U.S. companies are finally listening to stock and bond investors that have been pressing corporations to cut their debt loads.General Electric Co. is selling its biopharmaceutical business to Danaher Corp. for more than $21 billion, and using the money to pay down borrowings. Kraft Heinz Co. said last week it was slashing its dividend and using the proceeds of asset sales to reduce its liabilities.Randall Stephenson, AT&T's CEO, said last month that the company's top priority in 2019 is to lower its debt. Plans like these are good news for bondholders who have spent years watching these companies borrow ever more to finance moves like acquisitions that are designed to boost share prices, said Brian Kennedy, a senior portfolio manager at Loomis Sayles & Co."They're in credit repair mode and going full force at this," said Kennedy, whose firm managed around $250 billion at the end of December.The steps that companies are taking could mean that the credit meltdown that many banks … [Read more...] about Corporate America goes on a debt diet after a $3 trillion binge
Debt plan direct
A long effort to refinance Mobile’s bond debt has raised a tantalizing possibility: The city has a shot at being (mostly) debt free in eight to 10 years.At its meeting on Tuesday, the Mobile City Council unanimously approved a bond refinancing measure sponsored by Mayor Sandy Stimpson. Finance Director Paul Wesch says the move will affect about $26 million in debt, and the refinancing will save the city about $1.4 million depending on terms at the closing later this month.Stimpson and the council have been at odds over several issues lately, but there was no dissent on the refinancing. Mayor and council gave each other credit for a disciplined approach that has cut bond debt by about a third -- a figure approaching $100 million -- in Stimpson's five years in office. Councilwoman Bess Rich praised the administration for focusing on cutting debt, rather than refinancing to extend borrowing. Councilman Fred Richardson said he appreciated the administration's willingness to provide … [Read more...] about Mobile a decade from paying off municipal debt?
Joe Malinconico Paterson Press Published 2:50 PM EDT Nov 1, 2018 PATERSON – The city is looking to borrow almost $16 million, including $5 million to cover retirement payments 38 retiring police officers and firefighters. City officials have not yet released the names of the retirees nor how much each of them would get. The $5 million would cover 24 police officers and 14 firefighters who have indicated they may retire during the next eight months, officials said. The preliminary numbers indicate the retirees would get an average of $131,000 apiece. Last year, the council also approved $5 million in bonds for retiree payments, but the city ended up borrowing just $4 million because some employees on that list staying in their jobs. Besides compensating retires for unused vacation days, the payments also cover something called “terminal leave” that the city’s labor contracts provide to Paterson police officers and firefighters. Under terminal leave, … [Read more...] about Paterson NJ may pay $5M to retirees in $16M debt plan
Democracy Dies in Darkness Sections Home Try 1 month for $1 Username Sign In Account Profile Newsletters & Alerts Gift Subscriptions Contact Us Help Desk Subscribe Account Profile Newsletters & Alerts Gift Subscriptions Contact Us Help Desk Accessibility for screenreader Get There Perspective Perspective Interpretation of the news based on evidence, including data, as well as anticipating how events might unfold based on past events by Michelle Singletary by Michelle Singletary Email the author May 1 at 3:19 PM Email the author For some Americans, tax season doesn’t end April 15. (J. David Ake/AP Photo) For many Americans, the tax season is over. Their federal tax returns are in, and they’ve made vacation plans knowing they can pay for their fun in the sun with a fat refund. But then there are those who owe. For them, there is the ticking time bomb of their tax debt, plus … [Read more...] about No, you cannot get rid of your tax debt for pennies on the dollar
Here is your Investing Action Plan for Wednesday: what you need to know as an investor for the coming day. Tesla (TSLA), Mastercard (MA) and Square (SQ) are among the companies reporting quarterly earnings, while the Federal Reserve is set to wrap up a two-day policymakers meeting that begins today. X Tesla Model 3 Worries Estimates: A first-quarter per-share loss of $3.37, steeper than the $1.33 per-share loss posted a year earlier, according to Zacks Investment Research. Sales are expected to jump 18% to $3.17 billion. Shares edged up 0.6% to 295.74 in the stock market today. Shares of the company have been choppy amid its struggles to meet production goals for its Model 3 mass-market sedan, indicating patience among investors is running thin. The company plans to expand to round-the-clock car production by the end of June. CEO Elon Musk recently tweeted that Tesla would be back in the black the third and fourth quarters. Mastercard And The Payments Button Estimates: The … [Read more...] about Tesla, Mastercard, Square Earnings; Fed Meeting: Investing Action Plan