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Finance

IRS Announces Arrival of New Payments this October for Eligible American Families, Here’s What You Should Know

The Internal Revenue Service (IRS) is halfway finished with the dissemination of Child Tax Credit Payments for 2021. The third series of payments were distributed on September 15. Such funds were not sent out without difficulties. The fourth Child Tax Credit Payments are slated to be distributed on October 15 for bank accounts.

Child Tax Credit

Numerous parents will receive their fourth advance child tax credit payment two weeks from now. (Photo: Marca)

Numerous parents will receive the fourth advance child tax credit payment. Almost 35 million households were provided the last payout. Such payments amount to family stimulus checks. It began in July for families to pocket additional money in their bank account to help buy pay household bills, cover groceries, or pay down debt.

Effects of Child Tax Credit

The credit is $3,600 yearly for children under 6 years old and $3,000 for children from 6 to 17 years old. Qualified families will be granted $250 per older child and $300 monthly for each child under 6 years old. It was included in the American Rescue Plan passed in March. The first series of payments were disseminated in July and August.

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Do You Want to Opt-Out?

However, a number of people who claim a child or multiple children as dependents would prefer to opt-out of their final few advance payments. Such individuals have mere days left to opt-out of receiving child tax credit payments.

Arrival of Child Tax Credit Payments

The American Rescue Plan expanded the child tax credit, permitting for the first half of the tax credit to be transferred directly to families. Every month until December, the payments are arriving. An estimated $15 billion dollars worth of payments were distributed in September. Although October 15 is the deadline for those receiving the funds through direct deposit, individuals receiving the payments with a paper check through the mail will need to wait until the distribution of the US Postal Service, reported ABC 13 News.

Senator Joe Manchin’s Concerns

Budget reconciliation deals among Democrats have reached a stalemate over Senator Joe Manchin’s concerns regarding extending the Child Tax Credit (CTC) without a work prerequisite. Manchin thinks any new family spending should have “needs-based means testing” as he indicated in his discussion with Majority Leader Chuck Schumer, reported Niskanen Center.

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Finance

Hyatt Raises $1 Billion in Bonds to Fund Major Playa Acquisition

Hyatt Hotels Corp. has taken a big step forward in its plans to acquire Playa Hotels & Resorts NV, raising an impressive $1 billion through bond sales this week. This move is part of the company’s strategy to finance the $2.6 billion purchase, which is seen as a significant expansion in the hospitality market.

The Big Deal

On Monday, Hyatt successfully sold $1 billion in bonds aimed at funding this ambitious acquisition of Playa Hotels & Resorts, a well-known hotel brand that operates in various tropical and beach destinations. This sale is not just about raising money; it also indicates Hyatt’s confidence in the growth potential of the hospitality industry as it emerges from the challenges of the past few years.

Bonds with Benefits

The bond sale was structured into two parts: $500 million worth of three-year bonds and another $500 million in seven-year bonds. These bonds are being offered at attractive rates, with the three-year bonds yielding 1.05 percentage points more than government Treasury bonds and the seven-year bonds yielding 1.55 percentage points above Treasuries. This means that investors are interested and confident in what Hyatt is doing!

Important Deadline

What’s noteworthy about this bond sale is a special clause linked to the Playa acquisition. If Hyatt doesn’t finalize the acquisition by October 9, then the bonds will be redeemed at a premium price of 101%. This adds a bit of urgency to the deal, making it clear that everyone is eager to see Hyatt close this transaction as planned.

Market Activity

This bond sale comes at a time when many borrowers are seizing the moment to raise funds before the Federal Reserve meets this week to discuss monetary policy. As the economy continues to recover, financial markets are bustling and companies like Hyatt are taking advantage of favorable conditions to strengthen their positions.

A Bright Future for Hyatt

Hyatt’s acquisition of Playa Hotels is an exciting development. It allows Hyatt not only to expand its reach into more resort-style offerings but also to provide travelers with more options for their vacations. As people begin traveling again, this strategic move could position Hyatt well to cater to new waves of tourism throughout the coming years.

What Comes Next?

Following this bond sale exercise, all eyes will now be on Hyatt to see how quickly they can finalize the purchase agreement with Playa. The hospitality landscape is rapidly changing, and with Hyatt’s focus on adapting to new trends, including enhancing customer experiences and expanding their brand presence, this acquisition could be a game-changer.

  • Bonds sold: $1 Billion
  • Purpose: Fund acquisition of Playa Hotels & Resorts
  • Investor appeal: Attractive yield rates above Treasuries
  • Deadline for acquisition: October 9
  • Market activity: Increase in corporate bond sales

In summary, Hyatt Hotels Corp. is making significant movements in the hotel industry, tapping into the bond market to support its exciting plans for expansion. As the timeline for the Playa acquisition accelerates, the hospitality giant is positioning itself for a bright future in a recovering travel sector.