A Big, Busy, Bond Week
Companies tapped the bond market for over $38 billion last week. And, a fair number of the SEC filings had real information rather than just "general corporate purposes" in the use of proceeds section. Among the highlights:
- A big buyback for Amgen, with the door open for more.
- Teva issuing bonds to repay commercial paper used to buy Cephalon
- Peabody Energy financing its buyout of Australian miner Macarthur Coal.
- Windstream calling some bonds early and setting the stage to pay off some high yield debt that's coming with its PAETEC acquisition.
- Dr. Pepper Snapple paying off some maturing two-year paper with new 7 and 10 year notes.
The Peabody / Macarthur deal looks interesting. The deal is a part of expanding operations to serve coal demand from China and other growing, Pacific economies. It's also a great example of the global business markets with players from Europe, China, and Korea involved in addtion to the two key players from Australia and the US.
Disclosure - no position in any company mentioned.