RE:10% only. The LOC is just one of many nails in the coffin. RIP HCG
guderian wrote: People are stupid to belive that the funding cost with the 2 billion line of credit is 20 plus percent. It is not. It is only 10%. The paid a fee of 100 million up front. But that is just a transaction cost and one time fee. After the up-front fee is paid, the cost for using the facility is only 10%, which is high, but not high enough to cause problems in the short term.
In fact, that is the reason the board is not in a hurry to find another funding source. Since the up front fee has been paid, HCG may as well enjoy the facilty until a better source of credit can be identified.
Do not beleive the fear monger's rumor that the line of credit is going to doom HCG. It is not.