FMR LLC, the parent of Boston-based Fidelity Investments, is looking to raise $250 million through a debt offering, according to a Securities and Exchange Commission filing. But how the company plans to use the capital is anybody’s guess at this point.
According to the filing, Fidelity filed for the offering under Rule 506 of Regulation D but did not state how the proceeds are going to be used. However, the firm did indicate that it was not using the capital for merger, acquisition or exchange offer.
Reuters reports that some credit analysts are sensing weakness in Fidelity’s mutual fund business and have questioned the firm’s debt load. Spokespeople for Fidelity were not immediately available for comment on the new debt offering.
Hung Tran writes for Money Management Executive.