, Columnists
Getting the Cartier Crowd Hooked on Cheap Credit
Richemont will likely pay very little for its bonds. That gives it options.
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Cie Financière Richemont SA, the Swiss luxury giant, is roadshowing its inaugural bond deal this week. It is wisely choosing euros to help it secure funding at bargain-basement prices.
It might appear that a first-time issuer who is saying very little about the use of proceeds would have to pay some premium to issue debt. Not so for Richemont. Even the risk that the company gets hooked on cheap money to pay for acquisitions looks bearable.