Sales have plunged at Spuck Bennett’s Harley dealerships. “We’re just trying to survive,” he says.
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- Like many cash-tight companies, Harley, based in Milwaukee, is finding that borrowing is difficult — and expensive. In early February, Harley announced that Berkshire Hathaway, Warren E. Buffett’s company, would buy $300 million of its unsecured debt. (Harley reported total debt of $3.9 billion last year, more than double what it held in 2007.) In exchange for his good name and millions, Mr. Buffett demanded 15 percent interest from Harley on his investment (similar to deals he received from Goldman Sachs and General Electric when he invested in those companies last fall). read more
Harley’s largest investor, Davis Selected Advisers, matched Mr. Buffett’s deal, pumping $300 million more into the company, also at 15 percent interest.
