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Earthlink (ELNK -0.6%) issues a notice of redemption for its 3.25% Senior Notes due 2026,...

Earthlink (ELNK -0.6%) issues a notice of redemption for its 3.25% Senior Notes due 2026, joining a long list of companies paying off debt with free cash. What does it say about the corporate world when a once high-flying tech-bubble stand-in is settling now for retiring low-interest debt?
Comments (1)
  • Skip Olinger
    , contributor
    Comments (192) | Send Message
     
    To answer your question, the notes are convertible, hence the low rate. By redeeming the notes the company is reducing dilution of the equity holders. The company has adequate cash flow and does not need the capital. This is a good thing.
    15 Oct 2011, 08:58 AM Reply Like
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