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Booze, Special Dividends, Acquisitions....

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December 17, 2012 – Comments (3)

Among the highlights in last week's corporate bond market was a new record year.  The Wall St Journal reported that Brown-Foreman's (BF-B) $750 million dollar three-part issue was the deal that broke the tape.  Very fitting for this year, Brown-Foreman is using the money to fund a special dividend.

Other highlights:

Crown Castle (CCI) borrowing to finance a tender offer for higher rate paper.  Annual interest savings could be as much as $68 million.

AT&T (T) borrowed a billion euros.  Not sure why.

Six Flags (SIX) paying down some loans and funding a share buyback.

Access Midstream Partners (ACMP) borrowing and issuing units to buy Chesapeake Midstream Operating.

Williams Cos. (WMB) borrowing and issuing shares to buy stakes in Access Midstream and Access Midstream's General Partner.  You can't tell the players without a program.

Sidebar:  The editors at TMF typically do great work fixing errors or improving wording to make my stuff a better read.  But, I'm not sure the title change on this one was a step up - if you're curious, the original is part of the article url.  Feel free to cast your vote with a comment below.

As always, comments or questions are welcome here or at the article.

Fool on!  Russ

Disclosure:  Long T.

3 Comments – Post Your Own

#1) On December 17, 2012 at 7:21 PM, HarryCaraysGhost (99.64) wrote:

I'm voting for the original title, grabbed my attention.

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#2) On December 17, 2012 at 8:14 PM, ChrisGraley (29.86) wrote:

AT&T (T) borrowed a billion euros.  Not sure why.

They are expecting to pay back inflated Euros. 

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#3) On December 17, 2012 at 10:35 PM, rd80 (97.08) wrote:

John - I thought you might like the whisky version better.

Chris - I'm guessing either the inflated euro thing or funding for ops in Europe.  Either way, all T said in the SEC filing was 'general corporate purposes.'  I supose there can be valid reasons, but it just bugs me when a public company borrows billions and doesn't tell shareholders what they're doing with the money.

Thanks for the comments.

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