RWRocksOn

A Coming Flood of Equity Issuance, aka The Dilution Solution

Vulcan certainly has a lot of debt, but their debt covenant calls for total debt to capital less than 65% and they are at 50% and have all ready written down a billion of the Florida Rock goodwill. In addition, 30% of the Florida Rock purchase was with Vulcan stock that was also topped out (I think at $113). The rest of the deal was cash which may or may not have been a good idea - a normalized economy will tell. I do not agree with all their capital allocation decisions - the decision to continue issuing a dividend while selling WEB 10% plus bonds strikes me as a bit strange.