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Similarly, the use of additional debt can raise the profitability of a firm (because it is expanding its business with borrowed money), but more debt means more risk.
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American Apparel will use the proceeds of the sale to meet the payment due to Mr. Dell on Friday as well as $35 million of additional debt owed to him, these people said.
Greencore [could] raise £168m of additional debt to finance an acquisition.
"To buy any of the additional debt would cost the taxpayer more than one dollar for every dollar of debt retired.
2. If the financing takes the form of additional government debt, the added debt displaces other uses of the same funds.
We intend to fund the $17.3 billion cash portion of the transaction using $8.2 billion of our balance sheet cash and additional debt financing.
To saddle offenders of limited means with additional debt neither rehabilitates nor deters.
At the same time, nonprofit and public hospitals' ability to raise capital by issuing tax-exempt bonds (also known as conduit bonds) should encourage the use of debt financing, which raises their debt-to-equity ratios [ 23].
By October 1st Wrightson ICAP, a money-market research firm, reckoned the Fed had just $158 billion of unencumbered Treasuries left (see chart).The Treasury has helped the Fed out by issuing additional debt exclusively for its use.
Despite Germans' aversion to debt, the country is saddled with a record budget deficit of €86 billion, or $123 billion, but Mrs. Merkel said the additional debt was necessary.
No additional debt was incurred".
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