Already debt strapped, Att wants to borrow another 14 BILLION.
https://finance.yahoo.com/news/t-seek-14-billion-loan-163802025.html
13 replies (most recent on top)
Big, beautiful debt. More money to grow the company. More money for workers. Great.
that a company with that volume of cash pouring in has no reserve to draw on
Respectfully, you might want to invest some time to learn about corporate finance. And you will quickly realize why most major firms carry debt.
yeah, the cost of spectrum at auction is turning out to be higher than expected and interest rates are effectively zero. so what's a ittle more debt, right? well, att brings in about $180 bil per year in revenue ($140 bil pre-time warner). that a company with that volume of cash pouring in has no reserve to draw on and has to go begging for more credit to cover an unforeseen but essential expense of this size is a gigantic blinking neon sign advertising how badly mismanaged the company was and still is. when an incompetent management team is incapable of admitting, let alone fixing, their mistakes, their only recourse is to make other people pay for them. expect more layoffs ahead.
Just wait until interest rates start rising ... I will have abandoned ship before then thankfully!
AT&T discussing $14B bank loan to buy more 5G airwaves
Jan. 12, 2021 6:27 PM ETAT&T Inc. (T)By: Jason Aycock, SA News Editor101 Comments
AT&T (NYSE:T) is in early talks with bankers to raise $14B for what has become an increasingly heated race for 5G spectrum, Bloomberg first reported.
Bank of America is leading a transaction that will be structured as as 364-day delayed-draw term loan, with commitments due on Jan. 27. That would allow for waiting until the cash is needed, as well as for refinancing the deal in the bond market within the year.
An ongoing auction for the airwaves has soared past analyst estimates for a total of $47B - now at $80.8B and counting.
And while it's been paying down a debt pile that makes it the world's largest nonfinancial corporate borrower, taking on billions in new debt - even for a vital investment in its 5G future - could put it outside raters' thresholds for a mid BBB rating, Bloomberg points out.
Just have another layoff!! No need to borrow money.
OP apparently doesn't understand the difference between debt and a line of credit.
Are you saying T should just skip the auction? No spectrum needed for the future? I'd have to question the wisdom of that.
Current assets:
- 30 year old Lucent & Nortel class 5 circuit based switches
- 50 year old 4ESS tandem circuit based switches
- 25 year old Carrier systems for Trunking
- 100 year old in ground copper growing green stuff
And I could list more. I would not invest in t stock, nor would I buy t debt. Next stop - Bankruptcy.
Investing to make the company great again. Go AT&T!
The dividend is not required!!
att is the scum of the earth they should not be allowed to borrow any more money until they pay off what they have.
Absolutely required!
- To pay the dividend.
- To make debt payments for other loans.
- To further enrich Stinky, make Ratty's pension payments, and enrich the BoD
- So the can whack more employees!
Is next stop dividend cut?