Loans Are Cheaper Than Bonds for Some Highly Rated Companies

  • 📰 WSJ
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 63%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

With the Fed approving a 0.75-percentage-point rate increase, finance chiefs are doing the math as they weigh alternative instruments to pay for maturing debt, mergers and acquisitions or other transactions

a manufacturer of cigarettes and vaping devices, in recent months secured financing via term loans.

Term loans often have a shorter duration than bonds, with many of them ranging from three to five years. Companies that agree to take out a loan don’t have to draw on it, which can make it more like insurance than a bond, where investors pay the company soon after the deal has closed. Revolving credit facilities differ from term loans insofar as the borrower can draw funds up to a limit, repay and redraw again.

Conagra has about $937 million coming due in bond debt in calendar year 2023, according to S&P Global Market Intelligence, a data provider. The company, which had different financing options, said it chose a term loan due to the “relative strength of the bank loan market.” It last tapped the bond market in August 2021, S&P data show.

Philip Morris, which in June agreed to $5.8 billion in term loans alongside a bridge facility to fund its offer for

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 98. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Joliet police arrest 15 people for using fake business loans to bond out of jailAn investigation found that some inmates at the Will County Jail were applying for and receiving PPP loans, and then using the money to bond out of jail on their felony cases. Thank you Joe Biden. LetsGoBrandon Gangsta move 🤦🏾‍♀️ Hahahahahah hahahahahhaha
Source: fox32news - 🏆 547. / 51 Read more »