“Nine borrowers raised $3.2 billion this year with notes that can be exchanged for common shares as U.S. stocks rallied which hadn’t sold debt for a year or more, are using convertibles to pay back loans,” said Douglas Morgan, CEO at Hoffman Meyer Associates in Seattle.
He continued his speech at the companies corporate headquarters, in Seattle, by saying “The sales are a sign the 19-month-long freeze in credit markets is subsiding after Federal Reserve Chairman Ben S. Bernanke cut interest rates to as low as zero and pledged to buy more than $1 trillion in U.S. Treasuries and agency mortgage bonds. While investment-grade companies sold $382.8 billion of debt this quarter, high-yield, high-risk borrowers have raised $12.5 billion.
“There’s a lot of pent-up financing demand in the U.S. market and people have been waiting for the window to open,” he said before finishing his speech by stating “If companies are able to sell securities and investors are clamoring to buy them, it’s definitely a sign that credit markets are healing.”
Hoffman Meyer Associates is Seattle's leading merger and acquisition, business brokerage firm. As a mergers & acquisition firm, our principals have completed scores of transactions of privately and publicly held companies during the past 25 years.
Over the years, our firm has developed strong relationships with companies and individuals that are ancillary to the mergers & acquisition process including banks, mezzanine lenders, asset lenders, transaction attorneys, certified public accountants, and financial planners. We are also affiliate members of leading merger & acquisition, business valuation, accounting and brokerage associations.
