05-21-2021, 11:33 AM
T has stated that it will receive some $43 billion in "a combination of cash, debt securities, and WarnerMedia's retention of certain debt."
First of all, there won't be much cash moving around since there is no one to pay that cash to T. This leaves us with "debt securities" and "retention of certain debt". Now I don't know specifically what debt securities they are talking about but I'm kinda doubtful that we will be talking tens of billions here.
Combine this with the fact that they already said that SpinCo will be using the cash from the firsts couple of years to pay down debt to get into their desired leverage ratio..
My guess is that the large majority of that $43 billion is debt that will be pushed onto SpinCo's books.
First of all, there won't be much cash moving around since there is no one to pay that cash to T. This leaves us with "debt securities" and "retention of certain debt". Now I don't know specifically what debt securities they are talking about but I'm kinda doubtful that we will be talking tens of billions here.
Combine this with the fact that they already said that SpinCo will be using the cash from the firsts couple of years to pay down debt to get into their desired leverage ratio..
My guess is that the large majority of that $43 billion is debt that will be pushed onto SpinCo's books.