Wednesday, 9 October 2019

These highly leveraged real estate firms could feel the squeeze in a downturn

 To back its risky instant home-buying program, Zillow Group opened two credit lines with Credit Suisse and Citibank over the past 14 months totaling $1 billion. The revolving debt pushed the Seattle-based company’s borrowing to a record level as its earnings fell nearly 75 percent in the first half of 2019 to just above $26 million. Zillow then doubled down last month, when its executives announced plans to sell $1.1 billion in corporate bonds to



source https://therealdeal.com/issues_articles/debt-cuffs-corporate-real-estates-riskiest-balance-sheets/#new_tab

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