PepsiCo (PEP) obtains a new $2.875B, 5-year revolving credit facility from Citi that could potentially be increased to $3.5B. It replaces an existing $2.925B facility created in 2011. The soft drink giant has $29.4B in debt on its balance sheet as of March 22, to go with $8.7B in cash/investments. (8-K) [View news story]
So what does the information mean? Are they in trouble?
PepsiCo (PEP) CEO Indra Nooyi thinks China holds enormous potential for the company. The exec told Bloomberg TV that the nation hasn't seen any slowdown in demand for beverages and that it will be the largest market in the world for snacks in five to ten years. [View news story]
"It was not the bondholder group that caved," says Pimco's Kent Smith. "Bank of America (BAC) did." Smith was present at settlement talks in 2011 between BofA and the largest investors in soured MBS. Contrary to the glad-handing described by the settlement "objectors," the meetings were hostile, says Smith (testifying at the Article 77 hearing), with BofA's initial position being the grandchildren of the grandchildren of the investors would never recover a dime. The bondholder group eventually got $8.5B. [View news story]
AT&T (T) sells $564M worth of its stake in America Movil to reduce its position in the Carlos Slim entity to close to 9%. A round of buybacks by America Movil had the effect of increasing AT&T's percentage of shares to well-above the historic norm. [View news story]
So AT&T reduced the amount of shares Carlos Slim could get on the cheap?
Main Street Capital (MAIN) announces an increase in commitments to its line of credit, with the total now $352.5M from $287.5M previously. The credit facility's accordion feature is upsized, meaning the amount could go as high as $425M. The company currently has $110M drawn on the line. (PR) [View news story]
Some bank has increased their line of funding up to a high of $425 million. But they are as of now, using $110 million dollars.
More from the NY Attorney General: Schneiderman is set to sue Bank of America (BAC +2.2%) and Wells Fargo (WAC +0.3%) for "repeatedly violating" the terms of the $26B mortgage settlement, reports the NYT. At issue are improvements in servicing standards such as ending the bureaucratic nightmare of loan mods or foreclosure relief. Schneiderman's office has reportedly documented 210 violations against Wells, and 129 against BofA since October. [View news story]
It maybe that no liability has been mentioned because the violations have yet to be identified (The subject of violations is talked about on DEALbook this morning and the Attorney General Eric T. Schneiderman of New York's picture is above the article).
AT&T (T -0.5%) is set to launch new prepaid plans on June 15 under a brand called All in One, Fierce Wireless reports. The services will reportedly include a $35/month feature phone plan and a $50/month smartphone plan, with each supporting unlimited voice and text to go with a data bucket. The report comes a week after AT&T reported a Q1 net loss of 184K prepaid subs, a number that contrasts unfavorably with Verizon's (VZ) 43K net gain. Verizon recently launched a $35/month prepaid plan for feature phones, and $60-$70/month prepaid plans for smartphones. [View news story]
Verizon is killing AT&T in the wireless market. It's no secret that for the past 5 years especially, that many people have given up their land lines for wireless phones. Add poor customer service to the list and it spells a disaster for less customers.
Nelson Peltz discloses stakes in Mondelez (MDLZ) and PepsiCo (PEP), following earlier reports the billionaire could be pushing for a merger of the food giants, and PEP says it has held meetings with Peltz's Trian Fund Management in recent weeks to consider its "ideas and initiatives" for long-term growth. Trian says it owned 3.9M PEP shares and 19.4M shares in MDLZ as of Dec. 31. MDLZ +2.3%, PEP +0.8% premarket. [View news story]
As long as Pepsi co can pay out a dividend, I'll keep the stock.
Nelson Peltz discloses stakes in Mondelez (MDLZ) and PepsiCo (PEP), following earlier reports the billionaire could be pushing for a merger of the food giants, and PEP says it has held meetings with Peltz's Trian Fund Management in recent weeks to consider its "ideas and initiatives" for long-term growth. Trian says it owned 3.9M PEP shares and 19.4M shares in MDLZ as of Dec. 31. MDLZ +2.3%, PEP +0.8% premarket. [View news story]
There was some talk that PEP could spin off their snacks division to concentrate on the beverage side only.
AIG wins a legal battle, a federal appeals court ruling its $10B lawsuit against Bank of America (BAC) over mortgage losses belongs in state, not federal court. Filed in 2011, the case has been on hold while the venue is determined, but stems from what AIG claims were frauds and misrepresentations on $28B of MBS purchased from BofA, Merrill, and Countrywide. [View news story]
It could well be time to bail from Bank of America until they get their legal affairs in order. A bank with legal problems this big, doesn't strike me as a good investment. Where else do they get the money for the huge legal fees?
McDonald's Is Appealing Below $100 [View article]
PepsiCo (PEP) obtains a new $2.875B, 5-year revolving credit facility from Citi that could potentially be increased to $3.5B. It replaces an existing $2.925B facility created in 2011. The soft drink giant has $29.4B in debt on its balance sheet as of March 22, to go with $8.7B in cash/investments. (8-K) [View news story]
PepsiCo (PEP) CEO Indra Nooyi thinks China holds enormous potential for the company. The exec told Bloomberg TV that the nation hasn't seen any slowdown in demand for beverages and that it will be the largest market in the world for snacks in five to ten years. [View news story]
"It was not the bondholder group that caved," says Pimco's Kent Smith. "Bank of America (BAC) did." Smith was present at settlement talks in 2011 between BofA and the largest investors in soured MBS. Contrary to the glad-handing described by the settlement "objectors," the meetings were hostile, says Smith (testifying at the Article 77 hearing), with BofA's initial position being the grandchildren of the grandchildren of the investors would never recover a dime. The bondholder group eventually got $8.5B. [View news story]
AT&T (T) sells $564M worth of its stake in America Movil to reduce its position in the Carlos Slim entity to close to 9%. A round of buybacks by America Movil had the effect of increasing AT&T's percentage of shares to well-above the historic norm. [View news story]
Main Street Capital (MAIN) announces an increase in commitments to its line of credit, with the total now $352.5M from $287.5M previously. The credit facility's accordion feature is upsized, meaning the amount could go as high as $425M. The company currently has $110M drawn on the line. (PR) [View news story]
million. But they are as of now, using $110 million dollars.
More from the NY Attorney General: Schneiderman is set to sue Bank of America (BAC +2.2%) and Wells Fargo (WAC +0.3%) for "repeatedly violating" the terms of the $26B mortgage settlement, reports the NYT. At issue are improvements in servicing standards such as ending the bureaucratic nightmare of loan mods or foreclosure relief. Schneiderman's office has reportedly documented 210 violations against Wells, and 129 against BofA since October. [View news story]
AT&T (T -0.5%) is set to launch new prepaid plans on June 15 under a brand called All in One, Fierce Wireless reports. The services will reportedly include a $35/month feature phone plan and a $50/month smartphone plan, with each supporting unlimited voice and text to go with a data bucket. The report comes a week after AT&T reported a Q1 net loss of 184K prepaid subs, a number that contrasts unfavorably with Verizon's (VZ) 43K net gain. Verizon recently launched a $35/month prepaid plan for feature phones, and $60-$70/month prepaid plans for smartphones. [View news story]
Nelson Peltz discloses stakes in Mondelez (MDLZ) and PepsiCo (PEP), following earlier reports the billionaire could be pushing for a merger of the food giants, and PEP says it has held meetings with Peltz's Trian Fund Management in recent weeks to consider its "ideas and initiatives" for long-term growth. Trian says it owned 3.9M PEP shares and 19.4M shares in MDLZ as of Dec. 31. MDLZ +2.3%, PEP +0.8% premarket. [View news story]
Whisper Number Impact: Earnings Preview For Altria [View article]
Nelson Peltz discloses stakes in Mondelez (MDLZ) and PepsiCo (PEP), following earlier reports the billionaire could be pushing for a merger of the food giants, and PEP says it has held meetings with Peltz's Trian Fund Management in recent weeks to consider its "ideas and initiatives" for long-term growth. Trian says it owned 3.9M PEP shares and 19.4M shares in MDLZ as of Dec. 31. MDLZ +2.3%, PEP +0.8% premarket. [View news story]
AIG wins a legal battle, a federal appeals court ruling its $10B lawsuit against Bank of America (BAC) over mortgage losses belongs in state, not federal court. Filed in 2011, the case has been on hold while the venue is determined, but stems from what AIG claims were frauds and misrepresentations on $28B of MBS purchased from BofA, Merrill, and Countrywide. [View news story]
legal affairs in order. A bank with legal problems this big, doesn't strike me as a good investment. Where else do they get the money for the huge legal fees?
PepsiCo: $6.4 Billion Is Rewarding For Investors But At What Cost? [View article]
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