With financing costs down, however, rising debt multiples have not sliced cash-flow coverage for new LBOs.
With liquidity coursing through the leveraged finance market, financing costs are falling while debt multiples are rising.
Rising debt multiples and falling financing costs has allowed private equity firms to pay more for properties.
Last week, Anheuser-Busch Inbev said its quarterly profit jumped 75% on better sales and lower financing costs.
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Those losses were primarily the result of financing costs, which were reduced during a deleveraging in 2010.
So, in this very crude calculation, AirTran pays for the acquisition price in 4.5 years, excluding financing costs.
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Being domiciled in Greece as Greece gets downgraded can threaten that and add percentage points to financing costs.
However, reports also said Portugal debt financing costs have risen significantly this week.
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As a result of the drop in its bonds, the firm faces higher financing costs, adding to its woes.
They allow companies to recoup nuclear financing costs even before reactors are completed.
Possibly just enough to cover financing costs and the management overhead that had gone into them, something like that.
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Firms enjoy reduced financing costs on their other debts, freeing up cash that they can devote to the pension fund.
The mere hint that aid might be available caused the financing costs of weaker countries in the euro to fall.
Ill-informed consumers, he maintains, focus on the immediate financing costs of mortgages even though the debt will typically last for decades.
Although the Fed raised interest rates this week, farmers' financing costs are still low compared with what they were in the 1980s.
This has a direct impact, by increasing the financing costs of their trading operations and lowering the value of the bonds they hold.
Worse yet, interest rates are now on the rise worldwide, so Indonesia is likely to face higher financing costs for the public debt.
But the idea of a common bond to help weaker countries, which would raise the financing costs of stronger ones, may be a non-starter.
Georgia regulators have endorsed the project and are even allowing the company to charge ratepayers for financing costs before the reactors are up and running.
It was hoped that investors would reward this by letting interest rates fall and the real rise, thereby making the government's financing costs more bearable.
It does the obvious: reduces financing costs and supports credit demand.
Today's setting of moderate valuation for most sectors of the market combined with low financing costs makes the proposition even more compelling than in the '80s.
Wiseman was also hit by one-off financing costs and a higher tax bill due to the government's decision to phase out tax relief on industrial buildings.
But Fortescue, which is part-owned by Chinese state mining firms, said the tax would hit profits before financing costs, leaving it less room to repay debts.
But the second problem is that doubts about the bad debts banks may have on their own books have caused their own financing costs to rise.
The toxic correlation of sovereign and bank borrowing rates implies that the rise in government financing costs will be felt in terms of higher bank lending rates.
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Korean giant Samsung is offering its entire line on a two-year installment basis at zero interest -- an effective discount of 20% based on current financing costs.
More inventory means higher financing costs, which mean worse profits.
More inventory means higher financing costs, which means lower profits.
As well, private equity firms continue to focus on transactions that either (1) monetize existing assets via dividends and sponsor-to-sponsor sales, (2) lower financing costs, or (3) extend maturities.
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