The Interpreter Posted September 5, 2008 Share Posted September 5, 2008 http://www.cnbc.com/id/26561276 Quote Link to comment Share on other sites More sharing options...
fanofki Posted September 6, 2008 Share Posted September 6, 2008 Did they get all that debt from buying all the Paramount Parks? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted September 6, 2008 Author Share Posted September 6, 2008 Not all of it....they already were in some debt, though not much. And they borrowed more money to be sure to be able to pay distributions to unit holders after the acquisition. It still boggles my mind they borrowed additional money for the express purpose of paying it out over time to unitholders. Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted September 6, 2008 Share Posted September 6, 2008 Not all of it....they already were in some debt, though not much. And they borrowed more money to be sure to be able to pay distributions to unit holders after the acquisition. It still boggles my mind they borrowed additional money for the express purpose of paying it out over time to unitholders. I thought the same thing when I heard about it, but apparently the practice isn't uncommon at all. Just imagine what would happen to the value of the stock if they cut the dividend. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted September 6, 2008 Author Share Posted September 6, 2008 It's not a whole lot different than taking a cash advance on your credit card to put in a low yield savings account. Simply put, it doesn't make much sense.... Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted September 6, 2008 Share Posted September 6, 2008 Logistically you're right but the value in the FUN stock is in the cash distribution. If they cut it or didn't distribute for a quarter, the stock would drop significantly. That would be both bad PR and bad business for the company. Quote Link to comment Share on other sites More sharing options...
Tomkatt7 Posted September 6, 2008 Share Posted September 6, 2008 It's not a whole lot different than taking a cash advance on your credit card to put in a low yield savings account. Simply put, it doesn't make much sense.... Or to promise tax rebates to all of your citizens, and then borrow the money from another country to pay them? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted September 6, 2008 Author Share Posted September 6, 2008 Yeah, that too..... Or having the Government take extra money out of each of your checks, so that at the end of the year, you get a huge tax refund...money from the Government (NOT) (also not smart). Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted September 6, 2008 Share Posted September 6, 2008 I always thought that was funny when people thought they were getting such a great deal with their tax refunds... when realistically they just gave the government an interest free loan. Quote Link to comment Share on other sites More sharing options...
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