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Wednesday, August 29, 2007

Whole Foods credit rating takes a hit

They're borrowing a lot of dough to buy Wild Oats. Is that a limb they're going out on?

Comments (4)

LBOs are having problems because of the recent turmoil that spilled over from the sub-prime mortgage industry. Taking on debt now gets your ratings punished to a degree that probably wouldn't have happened prior to this spillover.

The irony here is that the FTC's investigation into the acquisition delayed the deal enough that Whole Food's timing is very, very bad. I smell legal action.

You can't sue the FTC for investigating you.

Seems weird they would do it this way instead of a stock swap. Corporate paper for a company as highly leveraged as WFMI has got to be expensive.

They're banking on this deal to make them a ton, no question. They were reportedly calling this "Project Goldmine" around the WF offices...

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