A little piece on an odd decision Adidas by Mike Rogoway:
Adidas America wants to sell its north Portland headquarters to raise money for operations, then lease back the property in a long-term deal.
This confuses me. Long-term interest rates are at historic lows, so how is it that this is a good way to raise capital? Either Adidas should be able to borrow directly or at the very least should be able to use the property to secure a very low interest loan against it.
But I am not a finance guy...still I wish someone would explain this to me.