{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

albemarle presentation

albemarle presentation - Case Analysis Heather Keller David...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Case Analysis: Heather Keller David Facey Daniel Levert Natalie Wilson Garrett Ross
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
CASE DETAILS Albemarle is a leading global producer of complex chemicals Their products are used as an additive to a wide range of products in numerous industries As of 2010, Albemarle was achieving record earnings and exceptional operating performance as well as strong cash generation They have outstanding debt totaling $766 million They have BBB rated bonds which is considered “good credit quality” At this time, borrowing rates were at a 20-yr low o The current rate is 4.25% o The average rate is 6.11% They fear that interest rates will rise in the future particularly when they refinance their credit facility in 2013 They have no immediate need for cash but should they still issue bonds right now while the rates are at a 20-year low?
Background image of page 2
PROS: Albemarle’s debt level will not increase and they will look more attractive to investors The costs of capital will not increase The leverage and coverage
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 10

albemarle presentation - Case Analysis Heather Keller David...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online