Refinancing at Current Rates Doesn’t Make Sense, Costco CFO Says
- Richard Galanti has been finance chief for nearly 40 years
- Retailer won’t buy back debt due 2024 before maturity: Galanti
Richard Galanti
Source: Costco Wholesale Corp.This article is for subscribers only.
Costco Wholesale Corp.’s Richard Galanti, who has served as Chief Financial Officer of the warehouse club retailer since 1985, says he views the more than decade-long period of low interest rates in the US as an anomaly.
Finance chiefs at many companies face a balancing act due to recent increases in financing costs, according to Galanti, one of the longest serving CFOs at an S&P 500 company. Costco is considering repaying a $1 billion bond maturing in 2024 with cash and won’t be buying back any debt ahead of its maturity, he said, adding that refinancing at current rates doesn’t make sense.