Xerox just raised $800M in junk-rated debt to fund a business that’s already on life support:
• 10.25% for First Lien Notes
• 13.5% for Second Lien Notes
That’s $95M/year in INTEREST — just for the privilege of owning Lexmark’s $743M annual losses.
Moody’s new rating: “LOL”
Moody’s outlook: Terminal
And in the immortal words of our fearless CEO (probably):
“Lexmark’s losses? I prefer to call them… pre-revenue momentum. If it weren’t for accounting, we’d be profitable! Think about it!”