"Porsche, Schaeffler Selling $9.6 Billion in Stock to Fund Debt Repayments"

sort of a "rob Peter to pay Paul" kinda thing.....

 

He's just following our current pattern.

 

Well sorta, but not.

Selling stock either from the company's treasury, or by creating new equity (which dilutes the value of existing shares) will increase the amount of shares on the market and convert the debt to liability to shareholders.

Debt holders have specific schedules they must be paid by and if not, the debt holders have rights to get paid that are not good for the company and definitely not good for the shareholders.

This is converting the debt that is due into equity by getting money from new shareholders, so the company and existing shareholders give up a little bit of control.

They are not financing the old debt with new debt.

 

What? Selling equity to pay debt is not kosher ?!?

 

they should have just put it all on a credit card.

 

yes, like this administration (and most previously) is doing

 

Amen