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Looking for cash? So are they
Tuesday, April 14, 2020

Companies are looking for cash just as many others. The last couple of days we’ve seen a variety of companies announcing entries into agreements (8-K, item 1.01) to borrow money. Many of the agreements include multiple notes for different due dates. Here is a sample of a few agreements:

Company Ticker Amount Raised ($M) Due Date Rate Date Announced
Darden Restaurants DRI $270 04/05/2021 LIBOR + 300bp* 04/07/2020
Fox Corp FOX $600 2025 3.05% 04/02/2020
FedEx Corp FDX $1,000 2025 3.80% 04/07/2020
Sysco Corp SYY $750 2025 5.65% 04/02/2020
Exxon Mobil XOM $1,500 2025 2.99% 03/17/2020
J M Smuckers SJM $500 2030 2.38% 03/10/2020
Estee Lauder EL $700 2030 2.60% 04/08/2020
Autodesk Inc. ADSK $500 2030 2.85% 01/14/2020
Fox Corp FOX $600 2030 3.50% 04/02/2020
FedEx Corp FDX $750 2030 4.25% 04/07/2020
Sysco Corp SYY $1,250 2030 5.95% 04/02/2020
Exxon Mobil XOM $2,000 2030 3.48% 03/17/2020

* As of 4/9/2020 USD LIBOR - 12 months is 1.05088 %

The interest rates for similar due dates and amount vary significantly. The differences are likely due to the companies’ negotiating power, the lenders’ perceived risk and other terms of the agreement.

The amount of activity with companies raising money, based on this anecdotal sample, may imply that debt market liquidity is not an issue. Even restaurant related businesses are raising money at a rate of about 4%.

Keep on checking Calcbench for new agreements. You can always create an alert to get notified when new agreements are coming in by going to our alerts page and checking off the 8-K material agreement.


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