Paints and coatings company The Valspar Corporation (VAL) declared that it has priced its underwritten public offering worth $500 million aggregate principal amount of Senior Notes. The company has agreed to sell $250 million of the aggregate principal amount of 3.300% notes, due 2025 and the other $250 million of 4.400% notes, due 2045.
The net proceeds from this offering are expected to be used for general corporate purposes including the repayment of part of Valspar’s commercial paper borrowings. The proceeds will also be used for the repayment of $150 million principal amount of 5.1% Senior Notes, due Aug 2015, at maturity.
The joint book-running managers for the offering are Wells Fargo Securities, Bank of America Merrill Lynch and Goldman, Sachs & Co. The planned offering follows a shelf registration statement filed by Valspar with the U.S. Securities and Exchange Commission (“SEC”).
Valspar reported solid fourth-quarter fiscal 2014 results in Nov 2014. The company saw its profits jump in the quarter (ended Oct 31, 2014) on continued momentum across its coatings businesses, backed by higher volumes and strong performance across all its product lines. Its profits, as reported, surged around 70% year over year to roughly $108.1 million or $1.28 a share.
Revenues rose roughly 11.3% year over year to $1,233 million in the reported quarter on gains across the company’s Paints and Coatings divisions, and strong performance across international regions.
Valspar expects sales growth for fiscal 2015 to be in the low single-digits. According to the company, the negative impact of currency translation, higher interest expenses and absence of the 53rd week in fiscal 2015 altogether, can lower sales, roughly by 4 basis points and reduce adjusted earnings by around 24 cents.
Valspar currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the basic materials sector include Minerals Technologies Inc. (MTX), NL Industries Inc. (NL) and Ashland Inc. (ASH). While Minerals Technologies and NL Industries sport a Zacks Rank #1 (Strong Buy), Ashland carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment