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Corning saves millions - last week's corp bonds

Recs

5

October 29, 2012 – Comments (1)

Corning was one of the borrowers issuing new debt last week.  It wasn't the biggest issue, but there's a big spread between the paper it sold and the paper it's buying back.  Enough that the company should save about $13 million per year in debt service.

Non-US borrowers and junk bond issues continue to make up a significant portion of the issues - 37% and 26% respectively.

The most common use of proceeds is debt refinance with a few acquisitions and share buybacks scattered in along with the catch-all 'general corporate purposes'.

Many of last week's deals were private, especially the junk and foreign issues.  That's not unusual.  What I haven't see much of are plans for capital expenditures, although that could be buried in 'gen corp purposes'.

Fool on!

Russ

 

1 Comments – Post Your Own

#1) On October 29, 2012 at 11:28 PM, awallejr (82.72) wrote:

I don't think you will see a lot regarding cap ex until the elections are over.

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