Originally Posted by RedKnight
What happens when the bond matures though? Where does the 600M come from then?
They would get a new loan hopefully for significantly less assuming they were using what they spent on interest payments to pay down the loans. Say they freed up 30 million a year they could pay off half of the 600 million and only need a bank loan of 300 million which is much easier to service than current debt.
Just think of it as going from a 10 year mortgage to a 20 year one. You pay more in the long run but it makes it easier to afford your house.