The world’s largest soft-drink maker, which has been mixing its proprietary syrup with carbonated water since 1886, became the third borrower in the last five years to sell long-term debt below the London interbank offered rate when it issued $2.75 billion of bonds on March 9, according to data compiled by Bloomberg. The offering included $1 billion of two-year notes that pay interest at 5 basis points less than Libor.
–Faux & Maeshwari, Coca-Cola Breaks Libor Floor in Bond Offering, Bloomberg News, 12 March 2012.
Did Greece exist in 1886? Or, 886 BC?
KO is not Greece. And, neither is most of the known developed world.
Amid the gloom and mystery of euro-incompetence, we must remember the non-sclerotic reality.
Life goes on.
The American CFO will turn to the American CEO and suggest they save in the vicinity of 65 basis points by putting a square peg in a round hole.
Big corporations are living large. Greece? And for that matter, we mere mortals?
We, Americans, are nowhere near LIBOR. We are placing a round peg in a square hole. (And, 2r decidedly does not equal s.)
Portugal beckons. Worry abounds. Some how, some way to our benefit, KO and its shareholders, and for that matter the rest of corporate America, will trickle down. They are less than LIBOR. Discuss.