Richard M. Hixson Pardoned Nu Skin
Courtesy of Bronte Capital
Yesterday I put up a popular post noting that Nu Skin, a multi-level marketing company – had breached its debt covenants and was pardoned by its bank.
The banker who signed on behalf of JPMorgan Chase was none other than Richard M. Nixon – the (presumably) deceased former President.
Prior to posting I confirmed that there was no easy-to-trace Richard M. Nixon working at JPM. But hey – Nixon used to hang around with Elvis, and Elvis is still alive – so why not the President?
Anyway Nu Skin lodged an SEC filing stating that they had been pardoned by Richard M. Hixson (declaring a typographical error).
I have confirmed through back-channels there is a Richard M. Hixson working for JPM and in an appropriate role at the bank.
I accept the Nu Skin explanation.
Nu Skin has neither confirmed nor denied they needed a pardon on their debt covenant – and they neither confirmed nor denied that they will breach their covenants again at the end of this quarter.
Those calculations are on the original post.
The buried punch-line of the original post was this:
In July 2014, the Company's subsidiary in Japan borrowed 3 billion Japanese yen (approximately $30.0 million), which is due on September 30, 2014. In July 2014, the Company's subsidiary in South Korea borrowed $20.0 million, which is due in December 2014, with a right to extend the term for an additional six months.
The company borrowed $30 million for two months without an obvious reason. It's like hey, I got $234 million in the bank, can you spot me $30 million for two months?
Whatever – they breached their debt covenants. And they needed a pardon. Richard M. Hixson did the job. And they are borrowing money offshore despite saying in their last conference call they have no trouble repatriating their (considerable) offshore balances.
At this point though I feel a little like Kermit the GORF.
John
