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Articles related to "debt"


Warren Buffett spent $6.5 billion to help Mars acquire Wrigley during the financial crisis. Here's the story of how he made the candy deal happen.

  • Warren Buffett shelled out $6.5 billion to help Mars acquire Wrigley in October 2008, cementing one of the few mega-mergers during the financial crisis and creating a global confectionery giant.
  • Wrigley accepted a $23 billion takeover offer from Mars in April 2008, paving the way for the pair to bring their brands under one roof, share talent and insights, and consolidate their sales, marketing, and distribution infrastructure.
  • Nearly five years after the merger, Mars reached out to Buffett and asked to repurchase Berkshire's Wrigley debt early.
  • The confectioner originally had the option to repurchase up to half of Berkshire's Wrigley shares during the 90 days starting October 6, 2016, but had to wait until 2021 to redeem the rest.
  • Add up the gains on the bonds and the shares with the interest payments and dividends, and Buffett made an estimated $6.5 billion from his Wrigley bet.

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Private equity under spotlight as retail victims pile up

  • But less than two years after the Halas family cut its remaining ties, after selling an initial 70 per cent stake in 2014 to a private equity firm backed by global luxury goods house LVMH, Seafolly has fallen into administration.
  • Fashion and beach wear brand Tigerlily went into administration in March, three years after it was bought by Crescent Capital; accessories chain Colette by Colette Hayman, which was 49 per cent owned by the private equity arm of IFM investors, appointed administrators in February; and womenswear brand PAS Group, 65 per cent owned by hedge fund Coliseum Capital, is up for sale after appointing administrators in May. The latest victim is the Australian arm of British-based menswear chain TM Lewin, which appointed Colby O’Brien, Stewart McCallum and Adam Nikitins from EY as voluntary administrators on Wednesday after the collapse of its parent.

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Tesla Can Get to $14,000 Per Share Even Without Robotaxi

  • I have a variation on the high functioning EV company Ark Invest case which has a $3400 price target for 2024.
  • The Ark Invest case assumes that Tesla only maintains its 17% world market share of electric vehicles.
  • This would take $11 billion of additional factories and expansion in Tesla in China.
  • Production ramping factories in US, China and in Europe and the launch of the Model Y, Semi and then the Cybertruck will continue to drive demand for all capacity that is built.
  • Elon will be able to buy more factories from failing car companies.
  • Fiat was buying $2 billion of zero-emission car credits from Tesla to avoid penalties for their polluting fleet.
  • This means Tesla could get per unit cash on sales of cars that they do not build.

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Coronavirus Surge Strains Municipal Bond Market, but Investors Still Pile In

  • The recent surge in Covid-19 cases has brought more bad news for a municipal bond market already reeling from the impact of coast-to-coast shutdowns and record unemployment.
  • On Wednesday, the U.S. Virgin Islands Water and Power Authority narrowly avoided default.
  • The utility got a badly needed reprieve when Chicago-based Nuveen LLC agreed to accept a $34 million payment due Wednesday on Aug. 31 instead.
  • Analysts...

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Unpacking how Dell’s debt load and VMware stake could come together

  • Last week, we discussed the possibility that Dell could be exploring a sale of VMware as a way to deal with its hefty debt load, a weight that continues to linger since its $67 billion acquisition of EMC in 2016.
  • VMware was the most valuable asset in the EMC family of companies, and it remains central to Dell’s hybrid cloud strategy today.
  • As CNBC pointed out last week, VMware is a far more valuable company than Dell itself, with a market cap of almost $62 billion.
  • As Holger Mueller from Constellation Research pointed out in our article last week, VMware is the one piece of the Dell family that is really continuing to innovate.
  • Meanwhile, Dell and EMC are stuck in hardware hell at a time when companies are moving faster than ever expected to the cloud due to the pandemic.

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A huge Wendy's and Pizza Hut franchisee just filed for bankruptcy

  • New York (CNN Business) - NPC International, the operator of 1,200 Pizza Hut and nearly 400 Wendy's restaurants in the United States, has filed for bankruptcy.
  • Pizza Hut, of which NPC is the company's largest franchisee, has also been struggling with sales recently.
  • NPC's restaurants will continue to operate while it navigates the Chapter 11 process.
  • The company employs nearly 40,000 people in 27 US states, according to its website.
  • In a statement to CNN Business, Pizza Hut said the filing "was expected" and remains supportive of NPC.
  • Pizza Hut has 7,100 restaurants in the United States.
  • NPC operates only a small portion of Wendy's roughly 6,500 US restaurants.
  • NPC is the latest US company to file for bankruptcy during the Covid-19 pandemic.

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Specialty Lenders Face Funding Challenge as Covid-19 Boosts Defaults

  • Some specialty finance companies that lend to midsize businesses are confronting the threat of a funding squeeze just as the coronavirus pandemic is causing defaults to rise, a potential one-two punch that could curtail their activities.
  • In the past seven weeks, two prominent companies that lend to middle-market businesses, Bain Capital Specialty Finance Inc. and Golub Capital BDC Inc., have both raised money by completing stock sales at significant discounts to their net asset values.
  • Such a sale is typically seen as a sign...

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Specialty Lenders Face Funding Challenge as Covid-19 Boosts Defaults

  • Some specialty finance companies that lend to midsize businesses are confronting the threat of a funding squeeze just as the coronavirus pandemic is causing defaults to rise, a potential one-two punch that could curtail their activities.
  • In the past seven weeks, two prominent companies that lend to middle-market businesses, Bain Capital Specialty Finance Inc. and Golub Capital BDC Inc., have both raised money by completing stock sales at significant discounts to their net asset values.
  • Such a sale is typically seen as a sign...

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Debelle rebuts the inflationistas

  • If you're anxious that massive amounts of money-printing by the world's central banks will inevitably trigger an outbreak of global inflation or a collapse in the currency then you'd be well advised to take heed of the latest comments from the Reserve Bank's deputy governor, Guy Debelle.
  • In a speech to the Economic Society of Australia on Tuesday, Dr Debelle coolly rebutted the argument of any number of monetarists and hedge fund titans who have warned that moves by the world's central banks to crank up the money printing presses, in response to the coronavirus pandemic, will inevitably result in a surge in inflation.
  • The RBA deputy governor coolly dismissed warnings that money printing to fund pandemic recovery efforts will lead to a surge in inflation.

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Wall Street banks net record fees for pandemic fundraisings

  • Emergency financings by car maker Ford, cruise line operator Carnival and aerospace and defence group Boeing were among the fundraisings that provided multimillion-dollar paydays for Wall Street banks that found investors willing to stump up the money.
  • Companies, countries and other organisations have raised more than $US7.8 trillion by borrowing in bond and loan markets and selling shares this year, according to financial data provider Refinitiv.
  • Morgan Stanley chief executive James Gorman this month told his bank's financials conference that M&A was “basically dead” for the second half of the year.
  • The biggest fee packages included $US119 million paid to the group of banks that helped T-Mobile borrow $US19 billion to fund its takeover of Sprint, according to Refinitiv.
  • Emergency financings by carmaker Ford, cruise line operator Carnival and aerospace group Boeing were among the fundraisings that provided multimillion-dollar paydays.

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