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
Student debt is a $1.48 trillion burden that financially hobbles millions of Americans, especially young ones, as they try to save for retirement and make major purchases likes homes or cars. But a nascent movement is underway in some corners of Corporate America to help workers carrying that burden. For instance, Abbott Laboratories plans next month to join this small group of employers that offer workers assistance with student loan repayment. With a program dubbed "Freedom 2 Save," the pharmaceutical giant will provide employees help with paying down their student loans, if they prove that they're contributing 2 percent of their eligible pay to their student debt via payroll deductions. In return, Chicago-based Abbott will contribute the equivalent of 5 percent into a 401 (k) plan. Program participants will receive a match without being required to make contributions, enabling them to use more of their earnings to pay off their student debt "Over the last several years, … [Read more...] about Helping employees repay student debt: A new perk?
Seating supplier scrapped plan to spend nearly $100 million on relocating HQPlymouth-based company refocusing on operationsWill open a new U.S. plant in the future Adient plc Adient scrapped its plan to spend nearly $100 million on relocating its main office from Plymouth to the Marquette Building at 243 W. Congress St. in Detroit in June. TRAVERSE CITY — Adient plc's more than $36 million investment to move its headquarters to Detroit was a mistake. CTO Detlef Juerss said the company's investment priorities since spinning off from Milwaukee-based Johnson Controls Inc. in October 2016 have been misguided and that under new interim CEO Fritz Henderson the company is refocusing on operations and performance. "We've been a little distracted," Juerss said Monday at the Center for Automotive Research's Management Briefing Seminars in Traverse City. "We're now transitioning to a focus on the day-to-day business ... not just the finer things in life." Detlef … [Read more...] about Adient exec calls plan to move headquarters to Detroit a mistake