re: #414 taxfreekiller

3- Wood

Did you get my question on FNF, Fidility National Financial, the Title Ins. Underwritter.

Why are they going for stock sale now on $1.1 Billion , to pay down debt
when the rates are so low.

Here’s why taxfree. Paying the interest on bonds is a firm obligation the company must make as required or else they are in default.

Paying dividends on common stock equity is optional, it you don’t have it you don’t pay it. Long story short, they have some doubts about their ability to pay interest regularly long term.

In fact they say they are going to use some of the proceeds from the stock issuance to pay off existing debt.

Fidelity National Financial Ups The Offering Ante (FNF)

The company has said that the net proceeds are for general corporate purposes, including the potential repayment of indebtedness under its existing $1.1 billion credit agreement.

I would view this as a negative signal from the management about the future.