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Itron (ITRI) Prices $100M Senior Notes Offering Due 2026

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Itron, Inc. (ITRI - Free Report) has offered and priced $100 million aggregate principal amount of 5% Senior Notes due 2026. The notes were issued at a price equal to 100% of principal and accrued interest from Dec 22, 2017.

Itron intends to utilize net proceeds from these notes to refinance existing debt, pay related fees and expenses, as well as for general corporate purposes. The notes will be treated as a single series and will have the same terms as the existing 2026 notes.

In December 2017, Itron priced the private offering of $300 million aggregate principal amount of 5% Senior Notes due 2026. The company used the proceeds from the offering of these notes to fund the merger consideration of the Silver Spring acquisition.

Itron recorded a strong cash flow position in the third-quarter 2017. The company expects to fund its growth and investment activities with existing cash, cash flow from operations, borrowings, or the sale of common stock or other securities.

However, Itron believes its revenues will be affected by the impact of market-driven delays in the Water projects. Further, expense fluctuation in currency rates and intense competition in the AMI space might hurt results.

Due to the above-mentioned factors, Itron has underperformed the industry it belongs to over the past year. The company’s shares have rallied 21.9% compared with 51.1% growth recorded by the industry.



Zacks Rank & Key Picks

Itron currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the same sector are Analog Devices, Inc. (ADI - Free Report) , H Broadcom Limited (AVGO - Free Report) and AMETEK, Inc. (AME - Free Report) . While Analog Devices and H Broadcom sport a Zacks Rank #1 (Strong Buy), AMETEK carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices has a long-term earnings growth rate of 10.4%. Its shares have rallied 18.9%, over the past six months.

H Broadcom has a long-term earnings growth rate of 13.8%. The company’s shares have been up 4.5% during the same time frame.

AMETEK has a long-term earnings growth rate of 11.9%. The stock has gained 23.3% in six months’ time.

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