Nasdaq/LSE Busting a gut

Nasdaq looks to have bust a gut to finance its hostile bid for the London Stock Exchange. The US exchange is issuing $775m of preference shares, the dividend on which will rapidly ratchet up to 14% unless they are refinanced. It has also taken out a $1.75bn bridge loan, the interest rate on which will escalate to 11% if it is not refinanced. One can see why Nasdaq is having to pay through the nose. The net debt and preferred equity of the combined group will be a stonking 8.5 times ebitda. Even ...