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Qorvo Announces Pricing of Additional Senior Notes Worth $130M
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Qorvo, Inc. (QRVO - Free Report) recently announced the pricing of an additional $130 million of convertible unsecured senior notes to enhance liquidity. The notes are slated to mature in 2026.
The pricing of additional secure notes is at 101% of par value which includes any accrued interest from Jul 16, 2018 through the closing date. Consequently, this will take the total principal amount outstanding to $630 million. These additional notes once placed, will be an unsecured senior liability of Qorvo, interest for which will be paid at 5.5%per year.
Notably, the size of the additional offering was increased from the previous offering of $100 million. Subject to customary closing conditions, the sale of these notes to initial buyers is anticipated to conclude on Aug 28, 2018. The notes will be privately offered to institutional buyers qualifying under Rule 144A of the Securities Act of 1933, as amended.
Qorvo intends to utilize the proceeds of additional notes to fund a tender offer for its 7% senior notes due 2025. We believe these notes will provide financial flexibility to the company and fuel long-term growth.
Share Price Performance
Shares of Qorvo have returned 23.1% year to date, substantially outperforming the industry’s rally of 1.9%.
The outperformance can primarily be attributed to robust adoptionof the company’s performance-tier for RF Fusion based solutions as well as for antenna tuning, discrete components and BAW-based multiplexers.
Qorvo’s Cash Position
As of Jun 30, 2018, the company’s cash and cash equivalents were $392 million compared with $926 million in the previous quarter. Long-term debt was $558.3 million as compared with $983.3 million at the end of the previous quarter.
Net cash provided by operating activities was $75 million down from $259 million in the previous quarter. Capital expenditure came in at $44 million.
Last Words
Qorvo is benefiting from improved demand environment in China. Solid demand for the company’s solutions in defense (advanced radars and other electronic warfare products) and connectivity (Wi-Fi and emerging Internet-of-Things-based applications) is a tailwind. Rapid adoption of GaN for high-power applications augurs well in the longer haul.
AspenTech, Mellanox, and Logitech have a long-term earnings growth rate of 16.5%, 15% and 8%, respectively.
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Qorvo Announces Pricing of Additional Senior Notes Worth $130M
Qorvo, Inc. (QRVO - Free Report) recently announced the pricing of an additional $130 million of convertible unsecured senior notes to enhance liquidity. The notes are slated to mature in 2026.
The pricing of additional secure notes is at 101% of par value which includes any accrued interest from Jul 16, 2018 through the closing date. Consequently, this will take the total principal amount outstanding to $630 million. These additional notes once placed, will be an unsecured senior liability of Qorvo, interest for which will be paid at 5.5%per year.
Notably, the size of the additional offering was increased from the previous offering of $100 million. Subject to customary closing conditions, the sale of these notes to initial buyers is anticipated to conclude on Aug 28, 2018. The notes will be privately offered to institutional buyers qualifying under Rule 144A of the Securities Act of 1933, as amended.
Qorvo intends to utilize the proceeds of additional notes to fund a tender offer for its 7% senior notes due 2025. We believe these notes will provide financial flexibility to the company and fuel long-term growth.
Share Price Performance
Shares of Qorvo have returned 23.1% year to date, substantially outperforming the industry’s rally of 1.9%.
The outperformance can primarily be attributed to robust adoptionof the company’s performance-tier for RF Fusion based solutions as well as for antenna tuning, discrete components and BAW-based multiplexers.
Qorvo’s Cash Position
As of Jun 30, 2018, the company’s cash and cash equivalents were $392 million compared with $926 million in the previous quarter. Long-term debt was $558.3 million as compared with $983.3 million at the end of the previous quarter.
Net cash provided by operating activities was $75 million down from $259 million in the previous quarter. Capital expenditure came in at $44 million.
Last Words
Qorvo is benefiting from improved demand environment in China. Solid demand for the company’s solutions in defense (advanced radars and other electronic warfare products) and connectivity (Wi-Fi and emerging Internet-of-Things-based applications) is a tailwind. Rapid adoption of GaN for high-power applications augurs well in the longer haul.
Zacks Rank & Other Stocks to Consider
Qorvo carries a Zacks Rank #2 (Buy).
Aspen Technology, Inc. (AZPN - Free Report) , Mellanox , and Logitech International S.A. (LOGI - Free Report) are some other top-ranked stocks in the broader technology sector. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AspenTech, Mellanox, and Logitech have a long-term earnings growth rate of 16.5%, 15% and 8%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>