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Colfax (CFX) Declares Pricing of Senior Notes Offering
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Machinery company Colfax Corporation recently announced that it has priced its previously offered €350 million of principal amount of 3.25% senior notes due 2025. The company noted that the issuance will be guaranteed by some of its domestic subsidiaries.
Over the last one month, Colfax’s shares yielded 2.59% return, outperforming 1.71% gain recorded by the Zacks categorized Machinery General Industrial industry.
As disclosed, the senior notes have been offered only to qualified institutional buyers and certain persons outside the U.S., following the guidelines of Rule 144A and Regulation S under the Securities Act, respectively.
Colfax intends to use the net proceeds from the issuance to repay approximately $301.7 million borrowings under the revolving credit facility and bilateral credit agreements, and for general corporate purposes. The offering will likely be completed on Apr 19.
Though such debt issuances satisfy liquidity needs, we believe it makes the company more levered. Exiting 2016, Colfax had long-term debt of approximately $1.3 billion. If unchecked, higher debt levels will increase the company’s financial obligations and subsequently hurt its profitability.
The company is expected to release the first-quarter 2017 results on May 2. The Zacks Consensus Estimate for the stock is 29 cents for the first quarter, $1.65 for 2017 and $1.87 for 2018.
Colfax currently has a market capitalization of $4.8 billion and carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the machinery industry include DXP Enterprises, Inc. (DXPE - Free Report) , Altra Industrial Motion Corporation and Graco Inc. (GGG - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
DXP Enterprises’ financial performance was impressive, with an average positive earnings surprise of 50.37% for the last four quarters. Also, earnings estimates for 2017 and 2018 were revised upward over the last 60 days.
Altra Industrial Motion reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 12.49%. Also, its earnings estimates for 2017 and 2018 improved in the last 60 days.
Graco reported better-than-expected results in the last quarter, with a positive earnings surprise of 17.65%. Also, bottom-line expectations for 2017 and 2018 improved over the past 60 days.
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Colfax (CFX) Declares Pricing of Senior Notes Offering
Machinery company Colfax Corporation recently announced that it has priced its previously offered €350 million of principal amount of 3.25% senior notes due 2025. The company noted that the issuance will be guaranteed by some of its domestic subsidiaries.
Over the last one month, Colfax’s shares yielded 2.59% return, outperforming 1.71% gain recorded by the Zacks categorized Machinery General Industrial industry.
As disclosed, the senior notes have been offered only to qualified institutional buyers and certain persons outside the U.S., following the guidelines of Rule 144A and Regulation S under the Securities Act, respectively.
Colfax intends to use the net proceeds from the issuance to repay approximately $301.7 million borrowings under the revolving credit facility and bilateral credit agreements, and for general corporate purposes. The offering will likely be completed on Apr 19.
Though such debt issuances satisfy liquidity needs, we believe it makes the company more levered. Exiting 2016, Colfax had long-term debt of approximately $1.3 billion. If unchecked, higher debt levels will increase the company’s financial obligations and subsequently hurt its profitability.
The company is expected to release the first-quarter 2017 results on May 2. The Zacks Consensus Estimate for the stock is 29 cents for the first quarter, $1.65 for 2017 and $1.87 for 2018.
Colfax Corporation Price and Consensus
Colfax Corporation Price and Consensus | Colfax Corporation Quote
Zacks Rank & Stocks to Consider
Colfax currently has a market capitalization of $4.8 billion and carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the machinery industry include DXP Enterprises, Inc. (DXPE - Free Report) , Altra Industrial Motion Corporation and Graco Inc. (GGG - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
DXP Enterprises’ financial performance was impressive, with an average positive earnings surprise of 50.37% for the last four quarters. Also, earnings estimates for 2017 and 2018 were revised upward over the last 60 days.
Altra Industrial Motion reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 12.49%. Also, its earnings estimates for 2017 and 2018 improved in the last 60 days.
Graco reported better-than-expected results in the last quarter, with a positive earnings surprise of 17.65%. Also, bottom-line expectations for 2017 and 2018 improved over the past 60 days.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>