Three in a row for strong bond volume
GM wasn't the biggest bond issuer last week, that was BHP Billiton. I didn't think it was the most interesting; that was Arcos Dorados. But, I thought it was the most interesting of the $ billion + crowd.
GM says taking down higher rate securities currently held by US and Canadian unions will add $0.11 per share to 2014 earnings. My numbers put the interest savings at just under ten cents per year, but I could be missing something. In any event, the borrow and buy back deals look like a good deal for GM shareholders.
Arcos Dorados deal was a two-fer. The company made a tender offer for existing, higher rate paper offering either a cash buy or a swap for new notes. That made for a two-part new note issue. One part selling notes to raise cash for the buy back and a second issue of the new paper to swap for the higher rate notes. I don't think Arcos is saving much with the deal, but it is extending maturity.
Fool on! Russ