Tech Firms Turn to Debt

Ben Worthen — Tue, 20 Apr 2010 11:00:11 +0000

A growing number of technology companies are turning to debt to raise capital, taking advantage of the thawing credit markets to build their war chests in anticipation of a wave of dealmaking.

Software companies including SAP AG (SAP), Adobe Systems Inc. (ADBE) and Salesforce.com Inc. (CRM) have recently raised several billion dollars by selling debt for the first time in their histories. The moves follow similar offerings over the past year from cash-rich giants like Microsoft Corp. (MSFT), which had $25 billion in cash when it took on debt for the first time last May.

The decision to take on debt breaks from tradition in tech, where companies have typically preferred to raise money by selling stock. Debt has become a more attractive fundraising option largely because interest rates are low.

Read the rest of this post on the original site

First Solar: Are Their Customers Piling Up Inventory?

Eric Savitz — Fri, 12 Dec 2008 18:03:27 +0000

ThinkEquity’s Jonathan Hoopes this morning made an aggressive call on First Solar (FSLR), asserting that a “high-level inventory analysis” of six of the company’s major customers lead him to conclude that there maybe be substantial numbers of First Solar panels sitting in customer warehouses. And he says that they aren’t likely to move out soon, “given weakening economies, lower natural gas prices, higher interest rates and tougher underwriting requirements.”

Hoopes contends that global solar demand headwinds are unlikely to subside for at least the next few quarters. “Take-or-pay contracts are only as good as the counter-party’s willingness and ability to do either,” he notes. Hoopes points out that Q-Cells, on its Dec. 9 conference call, said it will allow a flexible delivery schedule for customers and will also offer discounted prices to help share the burden.”

Read the rest of this post

AllThingsD » interest rates

Tech Firms Turn to Debt

First Solar: Are Their Customers Piling Up Inventory?