With Xerox increased debt load and declining share price, one has to wonder if the Lexmark deal is even feasible.
The combination of Lexmark and Xerox is two drowning companies clinging to each other.
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Moody's gave the new debt a Ba2 rating - it's a junk bond rating:
https://www.investopedia.com/terms/b/ba2-bb.asp
https://www.investing.com/news/stock-market-news/moodys-confirms-xeroxs-b2-rating-issues-ba2-to-new-senior-secured-notes-93CH-3947799
"Cost synergies of $200m"
That is 2,000 heads of redundancy.
We'll see if people buy the new notes:
https://www.stocktitan.net/news/XRX/xerox-corporation-announces-offering-of-senior-secured-u1lwxz0mn28y.html
No, not really.
The company was worth almost double what it is now when they announced it last year.
At the very least they used it as an excuse to lower the dividend. You should be happy if the merger doesn't through. All the Fed business is in jeopardy of you merge with a company under the direct control of the CCP.
Lexmark is banned t DHS, why would you merge with them? It's like merging with Kaspersky. Super d-mb.