We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tennant Declares Pricing of $300M Senior Notes Offering
Read MoreHide Full Article
Machinery company Tennant Company (TNC - Free Report) recently announced that it has priced its previously offered $300 million of principal amount of 5.625% senior notes due May 1, 2025. The company noted that the issuance will be guaranteed by two of its subsidiaries, Tennant Coatings, Inc., and Tennant Sales and Service Company.
Over the last one month, Tennant Company’s shares lost roughly 4.16%, wider than the decline of 2.6% recorded by the Zacks categorized Machinery General Industrial industry.
As disclosed, the senior notes have been offered only to qualified institutional buyers and non- U.S. investors, following the guidelines of Rule 144A and Regulation S under the Securities Act, respectively.
Tennant Company intends to use the net proceeds from the issuance to refinance a term loan that was taken for financing the company’s acquisition of Italy-based IP Cleaning S.p.A. and its subsidiaries (IPC Group) from Ambienta, a private equity fund, on Apr 6. Also, the proceeds will be used for paying certain fees and expenses.
Subject to customary closing conditions, the offering will likely be completed on Apr 18.
Though such debt issuances satisfy liquidity needs, we believe it makes the company more levered. Exiting fourth-quarter 2016, Tennant had long-term debt of approximately $32.7 million, representing 54.5% growth over the year-ago quarter. 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 Apr 24 before the market opens. The Zacks Consensus Estimate for the stock is 25 cents for the first quarter, $2.63 for 2017 and $2.79 for 2018.
Tennant Company currently has a market capitalization of $1.2 billion and carries a Zacks Rank #4 (Sell). 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.
Sell These Stocks. Now. Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Tennant Declares Pricing of $300M Senior Notes Offering
Machinery company Tennant Company (TNC - Free Report) recently announced that it has priced its previously offered $300 million of principal amount of 5.625% senior notes due May 1, 2025. The company noted that the issuance will be guaranteed by two of its subsidiaries, Tennant Coatings, Inc., and Tennant Sales and Service Company.
Over the last one month, Tennant Company’s shares lost roughly 4.16%, wider than the decline of 2.6% recorded by the Zacks categorized Machinery General Industrial industry.
As disclosed, the senior notes have been offered only to qualified institutional buyers and non- U.S. investors, following the guidelines of Rule 144A and Regulation S under the Securities Act, respectively.
Tennant Company intends to use the net proceeds from the issuance to refinance a term loan that was taken for financing the company’s acquisition of Italy-based IP Cleaning S.p.A. and its subsidiaries (IPC Group) from Ambienta, a private equity fund, on Apr 6. Also, the proceeds will be used for paying certain fees and expenses.
Subject to customary closing conditions, the offering will likely be completed on Apr 18.
Though such debt issuances satisfy liquidity needs, we believe it makes the company more levered. Exiting fourth-quarter 2016, Tennant had long-term debt of approximately $32.7 million, representing 54.5% growth over the year-ago quarter. 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 Apr 24 before the market opens. The Zacks Consensus Estimate for the stock is 25 cents for the first quarter, $2.63 for 2017 and $2.79 for 2018.
Tennant Company Price and Consensus
Tennant Company Price and Consensus | Tennant Company Quote
Zacks Rank & Stocks to Consider
Tennant Company currently has a market capitalization of $1.2 billion and carries a Zacks Rank #4 (Sell). 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.
Sell These Stocks. Now. Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>