McDonald’s Corporation (NYSE:MCD) Biggest Euro Bond Sale Extends Record Draw From U.S.

McDonald’s Corporation (NYSE:MCD) hits the news yet again, this time with the sale of bonds worth 2 billion euros.

The sale goes down as biggest single currency offer that the company has ever issued. McDonald’s offered the bonds that are expected to mature in 2019, 2022 and 2027. The company dismissed plans to issue bonds that will mature in 2035 as part of the sale strategy. The report was an anonymous tip from an informed source.

The number of borrowed funds, this year, has hit a record this year with the bonds issued by numerous companies such as The Coca-Cola Co (NYSE:KO) and others amounting to 49.8 billion. This value more than doubles the number of bonds issued in 2014. Last year bonds offered amounted to 22.5 billion euros. Firms have been taking advantage of the low borrowing costs in the Euro region.

The preference is because it is lower than the borrowing costs in the United States. Average investment bond yields in the Euro are lower than the dollar by almost 2%. This is, according to the Merrill Lynch Index data provided by the Bank of America.

According to Oliver Woyda, the trend is expected to go on until the end of the third quarter. Woyda is one of the money managers who oversee a portfolio of 8.3 billion euros of corporate bonds that are handled by an investment company called Deka Investment GmbH. The company is located in Frankfurt.

Officials from the fast food company were not available to produce a statement at the time. The company might raise about $4.5 billion from the bonds. The company is looking to improve its performance following quarterly report made a month ago. The year did not start well for the falling giant as the company has been under a lot of pressure from all sides.

The bonds issue is part of the company’s strategies to revamp its strategies and keep and reverse the trend, thus restoring sales and profits.

About the Author

Cooper is a graduated from Buffalo State College in New York with a bachelor's degree in Broadcast Journalism.

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