Seeking Alpha
  • Timothy M. David McAleenan Jr.
    Well damn. Looks like Kellogg (K) just became a much more interesting company.
    2/15/12
    Reply (6)
    • J. A. Saglimbeni: But that debt, it is nerve racking...indeed
      2/15/12
    • Timothy M. David McAleenan Jr.: If I were the Kellogg King, I'd combine the money set aside for share repurchases with share dilution and a bit of debt to get 'er done.
      2/15/12
    • Stephen J Melnykevich: That debt is going to have to be managed. What a change a few days can make though huh? I am re-evaluating the numbers for Kellogg today.
      2/15/12
    • Timothy M. David McAleenan Jr.: I am not a fan of companies that do share buybacks with that kind of debt. I get the low interest rates, but still, who needs handcuffs?
      2/15/12
    • Stephen J Melnykevich: Completely agree, it only makes sense when the interest rates are as favorable as your current debt level is small.
      2/15/12
    • Stephen J Melnykevich: K said deal "likely will increase its debt by about $2 billion and it plans to limit stock buybacks for about two years to reduce the debt."
      2/15/12