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Forums - Sales Discussion - ** Sony to Sell Bonds First Time in Nearly Three Years

darthdevidem01 said:
@FishyJoe

Ok but how does SONY expect to make money?

I mean is it not risky....in this financial situation to not do that...who knows when they will have enough money again & by then the interest may have made the original value much higher = more difficulties.

 

Sony doesn't make money from the bonds, the bond holders do. The money Sony gets from bonds is used to fund their operations, which are supposed to make money to pay the bonds back.



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Well, at least the have the cash to cover their immediate debt if they need to. Still - they may need a lot of this cash in the near future, they wouldn't want to run their cash supplies into the ground :P



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shams said:
Well, at least the have the cash to cover their immediate debt if they need to. Still - they may need a lot of this cash in the near future, they wouldn't want to run their cash supplies into the ground :P

 

Actually, the issuance of the bonds caused their credit rating to be reduced which in turn increases the costs of their debt.



FishyJoe said:
darthdevidem01 said:
@FishyJoe

Ok but how does SONY expect to make money?

I mean is it not risky....in this financial situation to not do that...who knows when they will have enough money again & by then the interest may have made the original value much higher = more difficulties.

 

Sony doesn't make money from the bonds, the bond holders do. The money Sony gets from bonds is used to fund their operations, which are supposed to make money to pay the bonds back.

key wording supposed to... if they declare bankruptcy depending on the terms and most likely, you will be considered a unsecured debter, unless you are a major bond holder, you will lose money in that situation. though id imagine sony will try its hardest to avoid that, as such things kill rasing money in the future

also id avoid buying gift cards from sony if they are having troubles, gift cards are one of the first things to be suspended, and in bankruptcy you will get nothing for it unless they are some kinda generous, or  a competitor honors them

 



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sorry DP

 



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@Rickthestick 2 Nintendo has some pretty hard times too. They were almost bankrupted before the N64 came out, and the Wii saved them too