Harley, whose bikes sell at prices from $6,999 to $35,499, has recently been hit by the depression too: it is firing 1,100 people and is closing three plants to save $60 million a year. Harley currently has almost $4 billion of debt on EBITDA in the $1.3 billion range. Hopefully the Hells Angels are doing better financially these days than the rest of the economy or otherwise this will end up being just another overleveraged, transportation company with a 20th century brand name.
Amusing, the underwriting syndicate consisted of Morgan Stanley, JP Morgan and Citigroup - did HOG really need three separate banks calling Buffett to make sure he does the deal? Either way, they all demonstrated good judgment by calling the very top name in the rolodex first.Sphere: Related Content Print this post