If they don't have the free cash to self-finance capital projects, they have to issue bonds.

The corporate bond market has been screwed since last August, with very high "risk premiums" above Treasuries.

Companies might be holding off, trying to wait for a more opportune moment to issue debt to finance these projects, especially a company like Kraft, who doesn't have a stellar balance sheet; their current ratio is < 1.0, their profit margins aren't exactly fat.

This is why I've been watching the bond market - problems in the bond market are like taking the wind away from a sailboat. The sailboat doesn't sink, but it also doesn't go anywhere.

Companies in debt that don't "go" anywhere still have to pay off (or roll over) their debt, so it can become a problem very quickly for leveraged companies.