They just borrowed another 475m at an 7.5% interest and a 2% royalty on top!
They call it a joint venture.
ROFL
11 replies (most recent on top)
@aq We no longer have a soul :) If were lucky by end of 2026 well still have our body.. the arm and legs are next to be sold off.
@a4 Sounds like Kevin from SharkTank and the mob got together to offer us a loan.
@a6 thanks for the clarification this helps. So in brief, Xrx is selling its soul to stay alive.
Makes it easy to strip down.
@a3 the Price action is driven by high short demand.
Effectively Xerox is no longer owned by Xerox.
All brands, trademarks, goodwill and patents we sold to IPCo for 475M.
On top of that IPCo will receive 2% of all revenue tied to the above IP, along with an interest payment of north of 10% per annum on 475 million.
The goodwill is an interesting piece here. And might be one of the reasons for IPCo doing this.
Can someone help to explain as I just read this story. So Xerox receives a loan that is backed by IP. Is technically a loan or a joint venture? I guess regardless how you look at it - how does Xerox pay this back? I’m confused. So this essentially adds to the 4.3 billion in debt?
Xerox no longer owns the Xerox brand. It is now owned by IPCo.
So everybxerox IP sold over the new licensing agreement, Xerox needs to pay a 2% royalty fee to IPCo for using the Xerox brand.
Street seems to like it
Correction! It’s baserate + 7.125%
In other words is roughly 15% interest in total.
Investors.xerox.com/node/31106/html