by Ron Carleton | Jun 1, 2009
Microsoft borrowed $3.8 billion in the US corporate bond market on May 11, driving its total debt up to $5.8 billion. But there’s no need for panic. The company had $36.9 billion worth of cash and investments at the end of March, was producing annualized EBITDA...
by Ron Carleton | May 18, 2009
When someone asked Sergio Marchionne what he would do if someone asked him to start a car company from scratch, he replied, “Lie down until the feeling passes.” Anyone counting on him to do for Chrysler what he did at Fiat has to be hoping he won’t...
by Ron Carleton | May 8, 2009
When Thomas H. Lee Partners purchased Michael Foods in 2003,it financed the deal with a combination of term loans and bonds. All partiesagreed that if there was ever a problem, the term loans would be repaid before the bonds. In exchange for agreeing to take this...
by Ron Carleton | Apr 23, 2009
Competition affects credit strength, and never more than in tough times. Favorable conditions can mask competitive weaknesses. Consider General Motors at the peak of the SUV craze. Unfavorable conditions can amplify weaknesses. Consider General Motors today. This...
by Ron Carleton | Apr 13, 2009
The U.S. accounting authorities are finishing a round of changes to the way banks account for the value of their impaired assets. A number of rules are involved: FAS 114, FAS 115, FAS 124, FAS 157. The combined effect will make it easier for banks to avoid reporting...
