Charles Schwab to raise $2.5 bln in long-term debt (because we are not in trouble at all../s)
Charles Schwab Corp is looking to raise $2.5 billion in long-term debt, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. The financial services firm will issue $1.2 billion in debt due in 2029 and $1.3 billion due in 2034, the report added. The company declined to comment on the matter. Charles Schwab said it intends to use the net proceeds for "general corporate purposes", and did not disclose the pricing for the offering in its filing with the U.S. Securities and Exchange Commission. Shares of the company, which have lost about 38% of their value so far this year, fell 1.5% in extended trading.
BofA Securities, Citigroup, Credit Suisse, Goldman Sachs & Co. LLC, J.P. Morgan and Wells Fargo Securities are the joint book-running managers for the offering.
https://www.reuters.com/business/finance/charles-schwab-raise-25-bln-long-term-debt-wsj-2023-05-17/
https://finance.yahoo.com/quote/SCHW
Seriously…you need $2.5B for "general Corporate Purposes"…kek!! hilarity..I could see a coupla hundred million as an excuse they own TD Ameritrade (bought in 2020) and were on the list of one of the next ones to need a yuge bailout-if they don't get the debt sold they can always go raid the brokerage side of the business…go ask John Corzine all about that (MF Global)
Schwab got upgraded on Monday too
Raymond James upgrades Schwab to outperform from perform
https://www.morningstar.com/news/marketwatch/20230515101/raymond-james-upgrades-schwab-to-outperform-from-perform
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