No. of Recommendations: 1
Stupid use of capital is stupid use of capital.

Just because capital is cheap, equity or debt, does not mean it is an intelligent business decision to access the cheap capital. The point of the game is to get a higher rate of return on any capital relative to its cost. Borrowing cheap and then watching it imitate a chia pet is not good business.

I am sure the deal makers would love to have more debt to sell. They make a pile of money helping companies issue debt. The only group likely to come out ahead on this deal are the investment bankers assisting the debt issue.

jack
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