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Banks reportedly forged ahead this week with syndication of a $12.5B loan package backing...

Banks reportedly forged ahead this week with syndication of a $12.5B loan package backing Freeport McMoran's (FCX +4%) two recent acquisitions despite growing shareholder concerns. Bankers are mostly shrugging off the transaction risk due to FCX's strong risk profile; net debt to EBITDA is -0.03x and will move up to only 1.9x under the terms of the transaction.
Comments (3)
  • minwyhe
    , contributor
    Comments (103) | Send Message
     
    Can the banks be sued for supporting this attempt to boondoggle investors? The executive and the board need to be held accountable and now the banks.
    14 Dec 2012, 05:52 PM Reply Like
  • alan460
    , contributor
    Comments (26) | Send Message
     
    yes the banks could be sued but they'd just have to pay a small fine anyway - maybe 3 days profit?
    14 Dec 2012, 09:25 PM Reply Like
  • J. B. Wulff
    , contributor
    Comments (22) | Send Message
     
    I've owned FCX, through various configurations, for decades and regularly made money on it. Dividends were also pretty good. They have always been players with a solid Board of Directors. They have placed bets, if you will, and folded at times. The operation has earned my confidence and I added to my holdings when the shares tanked on the news. I cannot predict the future, but I've placed my bet. They have gained a valuable position in petroleum with which they are well acquainted. They have diversified within the realm of raw materials, their area of expertise. Their holdings in Indonesia remained intact during a time when others lost their investments. You have to love a top dog who is known as Jim-Bob.
    15 Dec 2012, 12:38 AM Reply Like
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