[linux-elitists] Red Hat borrows $500M

Jonathan Corbet corbet-elite@lwn.net
Tue Jan 6 18:13:41 PST 2004


Red Hat is issuing debentures for $500M, due in 20 years, at a 0.5%
interest rate.

  http://www.businesswire.com/cgi-bin/f_headline.cgi?bw.010604/240065945&ticker=RHAT

They are convertible for stock at $25/share.  

Question: why would Red Hat, with $300M in cash and investments, borrow
$500M more?  If they're doing something involving that sort of cash, I'd
sure like to know about it...

jon



More information about the linux-elitists mailing list