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?
| Posted at 10:35 AM | Permalink |
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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.
Posted by John Rettig | August 29, 2007 12:16 PM
You can't sue the FTC for investigating you.
Posted by Jack Bog | August 29, 2007 12:20 PM
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.
Posted by Steve | August 29, 2007 1:16 PM
They're banking on this deal to make them a ton, no question. They were reportedly calling this "Project Goldmine" around the WF offices...
Posted by Jack Bog | August 29, 2007 1:18 PM