MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, October 29, 2009 Why Did Fidelity's Parent Sell $700 Million of Debt? Fidelity Investments' parent, FMR, sold $700 million of debt on Wednesday and plans to use the money on technology and product development, a company spokeswoman confirmed to The MFWire. The Boston Behemoth sold $300 million of notes with a 5.35 percent coupon maturing in 2021 and $400 million of notes with a 6.45 percent coupon maturing in 2039. "Our company has a history of internally financing its growth, and we've accessed the debt market from time to time in the past," Fidelity spokeswoman Anne Crowley said in an e-mailed statement to The MFWire. "Right now we're experiencing growth in several aspects of our business and have forecast for some spending needs, including in the areas of technology and the development of new products and services." "At this time, relatively low rates for long-term, high-quality corporate bonds provide a distinct opportunity for us to acquire capital to help support future growth at a competitive cost compared to other means of obtaining capital," she added. Printed from: MFWire.com/story.asp?s=23082 Copyright 2009, InvestmentWires, Inc. All Rights Reserved |