Flowserve Corporation (FLS - Analyst Report) recently announced that it has priced $300 million worth of aggregate principal amount of 4.00% Senior Notes which are due in 2023. The company has priced the underwritten public offering at 99.532% of the principal amount. Flowserve expects the offering to close on Nov 1, 2013. However, the closure date is subject to the customary closing conditions.
Flowserve’s net proceeds from this offering is estimated to be about $295 million after paying for the discounts to underwriters, the estimated fees for the offering and some other expenses.
The company intends to utilize the proceeds from this offering to repay debt under its revolving credit facility and for general corporate purposes. Flowserve ended third quarter 2013 with cash and cash equivalents of $113.7 million compared with $304.3 million as of Dec 31, 2012.
The company’s long-term debt had decreased to $839.2 million compared with $869.1 million at year-end 2012. The note offering is a part of this continued initiative to reduce debt.
Flowserve is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 55 countries, the company produces engineered and industrial pumps, seals and valves, as well as a range of related flow of management’s services.
The company sells its products through direct sales force, as well as through distributors and sales representatives. The company operates in three divisions: Flowserve Pump, Flow Control and Flow Solutions.
Flowserve currently holds a Zacks Rank #2 (Buy). Some other important players in the industry include Graham Corp. (GHM), IDEX Corp. (IEX - Analyst Report) and Parker-Hannifin Corp. (PH - Analyst Report), each boasting the same rank.