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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (78551)	11/19/2025 10:04:33 AM
From: Madharry	Read Replies (3) \| Respond to of 78753

not sure i understand what you are saying here. I am assuming that paypal has a process for approving BNPL credits which KKR has vetted and approved or they would not do this deal. also not clear since i have not reviewed the agreement between BNPL and KKR , if PYPL is responsible for repurchasing delinquent credits, and to what extent. Bruwin's analysis looks promising.

To: E_K_S who wrote (78551)	11/19/2025 10:58:55 AM
From: bruwin	4 Recommendations Recommended By E_K_S Lance Bredvold robert b furman S. maltophilia Read Replies (1) \| Respond to of 78753

" Why do they need so much debt w/ such good FCF?" The way I've always viewed the Long Term Debt is about what that Debt is costing the company, which is reflected in the "Interest Expense". That, to me, is the important factor because a company may have a Debt but that may have been obtained on very favourable terms, or similar. It could also be the case that a company can get a higher percentage return elsewhere, using that Debt's capital, than what the Debt is costing the company. What actually affects the Income Statement and its Bottom Line is the actual COST of that Debt. I measure it in terms of how much of the company's EBITDA has been reduced by that Interest Expense. In PAYPAL's case there is still ~81% of EBITDA Revenue left over after deduction of that expense.