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Borrowing for Dividends and More

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December 03, 2012 – Comments (1)

Last week was a busy one in the boring world of bonds.

Costco and Murphy Oil borrowing to pay special dividends before year end.

Clean Harbors is raising the financing for its Safety-Kleen acquistion.

Amazon isn't telling us why it needed to borrow $3 billion when it's already sitting on billions in cash.

Disney isn't telling us why it needed to borrow by listing nearly every possible use for the money in its SEC filing.

And, I learned about a few more foreign companies I hadn't heard of before.  Like Santiago, Chile based retailier Cencosud (CNCO).

Maybe it wasn't so boring.

Update:
This morning, there were a few more special dividends announced to get payments out ahead of a possible dividend tax hike.  Hospital chain HCA will be borrowing to make its payout.  Low interest rates combined with possible tax policy changes are making what seems stupid be maybe not so stupid.

As always, questions and comments cheerfully accepted here or at my article.

Fool on!  Russ

Disclosure:  No position in any company mentioned in this blog entry.

 

 

1 Comments – Post Your Own

#1) On December 04, 2012 at 1:06 AM, awallejr (81.55) wrote:

Oracle joined the group.

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