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Bemis Prices Senior Notes, Gets Baa2 Rating from Moody's
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Bemis Company, Inc. has priced an underwritten public offering of $300 million aggregate principal amount of 3.10% senior notes due 2026. The company will pay interest on the notes semi-annually, on Mar 15 and Sep 15 of each year, beginning Mar 15, 2017.
Bemis intends to use the net proceeds from the offering to repay outstanding commercial paper and for general corporate purposes. The senior notes offering is expected to close by Sep 15, 2016, subject to customary closing conditions.
BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are serving as the joint book-running managers for the offering.
In addition, Moody’s Investors Service – the rating unit of Moody's Corporation (MCO - Free Report) – has assigned a Baa2 rating to Bemis’ Senior Unsecured Notes. Other ratings remain unchanged. The Baa2 rating is supported by Bemis' leading position in the industry as well as its track record of innovation.
Bemis has developed innovative proprietary films and value-added specialty packaging, and continues to dedicate resources to further development of new products. Its expertise in mixing and blending resins and developing value-added products assists customers. The company also has opportunities to expand into emerging markets as consumers continue to develop and seek value-added packaging solutions.
The rating outlook is stable. This reflects an expectation that Bemis will benefit from its completed and ongoing initiatives as well as recent acquisitions, and maintain credit metrics within the rating category.
However, Bemis remains sensitive to resin price fluctuations and competitive pressure as around 40% of its business is not under contract, and lacks input cost pass-through provisions, making pricing subject to market and competitive conditions. Additionally, the company’s performance will be hurt by foreign currency headwinds and a shift in demand.
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Bemis Prices Senior Notes, Gets Baa2 Rating from Moody's
Bemis Company, Inc. has priced an underwritten public offering of $300 million aggregate principal amount of 3.10% senior notes due 2026. The company will pay interest on the notes semi-annually, on Mar 15 and Sep 15 of each year, beginning Mar 15, 2017.
Bemis intends to use the net proceeds from the offering to repay outstanding commercial paper and for general corporate purposes. The senior notes offering is expected to close by Sep 15, 2016, subject to customary closing conditions.
BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are serving as the joint book-running managers for the offering.
Bemis Price
Bemis Price | Quote
In addition, Moody’s Investors Service – the rating unit of Moody's Corporation (MCO - Free Report) – has assigned a Baa2 rating to Bemis’ Senior Unsecured Notes. Other ratings remain unchanged. The Baa2 rating is supported by Bemis' leading position in the industry as well as its track record of innovation.
Bemis has developed innovative proprietary films and value-added specialty packaging, and continues to dedicate resources to further development of new products. Its expertise in mixing and blending resins and developing value-added products assists customers. The company also has opportunities to expand into emerging markets as consumers continue to develop and seek value-added packaging solutions.
The rating outlook is stable. This reflects an expectation that Bemis will benefit from its completed and ongoing initiatives as well as recent acquisitions, and maintain credit metrics within the rating category.
However, Bemis remains sensitive to resin price fluctuations and competitive pressure as around 40% of its business is not under contract, and lacks input cost pass-through provisions, making pricing subject to market and competitive conditions. Additionally, the company’s performance will be hurt by foreign currency headwinds and a shift in demand.
Bemis currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the sector include Berry Plastics Group, Inc. (BERY - Free Report) and Packaging Corporation of America (PKG - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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