Corporations like funding In the front, but first what the heck does that mean?
To fund the acquisition of Kite Pharma, Gilead Sciences priced a $3 billion bond deal and took out a $6 billion term loan. This in itself isn’t that unusual. Companies have been making heavy use of low-interest rates to finance acquisitions through debt since the great financial crisis.
[klarman]
- Imagine A World Without Cash
- S&P 500 Corporate Cash At $1.7 Trillion As Firms Gorge On Debt
- How Will Berkshire Hathaway Deploy Its $100 Billion in Cash …
However, what’s interesting to note about this deal according to Bank of America analyst Hans Mikkelsen and team, is that all of the bond tranches were two years or shorter. One...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full ArticleAlready a member? Log in here
