Debt

Excerpt: Most airlines survived the pandemic financial crisis, but will they survive the recovery?

Airlines like Air Canada are raising private capital through various means, while also seeking emergency government assistance.

Hong Kong Stock Exchange-listed ocean carrier Pacific Basin (HK: 2343) will issue US$175 million (approximately HK$1,371 million) of non-amortizing unsecured convertible bonds to boost its balance sheet while growing and renewing its fleet.

If UPS sticks to its capex and buyback plans—which exceed projections for free cash flow—the parcel carrier may have to issue more debt.

Rating agency Moody’s Investors Service said it upgraded its ratings on about $3.2 billion debt issued by XPO Logistics, Inc., (NYSE: XPO) citing a “positive operating environment” in 2019 for transport and logistics companies, as well as XPO’s strong performance.

We explain how the yield curve works, how it affects the cost of debt, and what that means for trucking.

The Fed has raised interest rates to 1.25%–rates on new loans, equipment leases, old variable debt, and factoring services will all go up.