Thread regarding Navient layoffs

Why is Navient borrowing money?

Why is Navient borrowing $52M when its profits are up? And what does this mean?

"Our substantial indebtedness could adversely affect our financial condition.

We will have a substantial amount of indebtedness, which could limit our ability to obtain additional financing for working capital, capital expenditures, stock repurchases, acquisitions, debt service requirements or other purposes. It may also increase our vulnerability to adverse economic, market and industry conditions, limit our flexibility in planning for, or reacting to, changes in our business operations or to our industry overall, and place us at a disadvantage in relation to our competitors that have lower debt levels."

https://www.sec.gov/Archives/edgar/data/1593538/000119312517196080/d285198d424b2.htm

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Isn't it ironic that Navient has to borrow so much money?

"We have unsecured debt that totaled $14.0 billion at March 31, 2017. Three credit rating agencies currently rate our long-term unsecured debt at below investment grade."

https://www.sec.gov/Archives/edgar/data/1593538/000119312517143137/d321115d10q.htm

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