This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
Lamar Advertising Company (LAMR - Analyst Report) recently announced a tender offer to repurchase $600 million principal amount of its 65/8% Senior Subordinated Notes. Each $1000 note has been priced at $1,005.83.
The company’s subsidiary, Lamar Media Corp. will repurchase the Notes, comprising 65/8% Senior Subordinated Notes due 2015, 65/8% Senior Subordinated Notes maturing in 2015—Series B and 65/8% Senior Subordinated Notes due 2015—Series C in a tender offer. The repurchase reduces the company’s ‘65/8% notes’ outstanding balance from $843.1 million.
The company will fund the notes purchase from $147.2 million of borrowings under the revolving portion of Lamar Media’s senior credit facility as well as with the proceeds of a private offering of $500 million worth of notes issuance (due 2022), announced recently by the company. The issuance is likely to raise approximately $489 million, after payment of fees and expenses.
Notwithstanding the purchase and issuance of Notes as mentioned above, Lamar is also seeking a new $100 million term loan of “A” facility under its existing senior credit facility. If granted, the company desires to raise the Notes purchase by $100 million.
In the third quarter 2011, the company’s debt level plummeted which pulled down the interest expense by 6.2%. In addition, growth of more than 100% in cash and cash equivalents is worth mentioning.
The current Zacks Consensus Estimate for earnings per share for the fiscal year 2011 and 2012 are 3 cents and 21 cents, representing annual growth of 110.67% and 693.75%, respectively. The Zacks Estimate for the fourth quarter remains at a break-even level, representing growth of 104.55%.
The company is slated to release its fourth quarter results on February 22, 2012.
Lamar is a leading Louisiana-based owner and operator of outdoor advertising structures in the U.S. The company faces stiff competition from its peers in the industry including Clear Channel Outdoor Holdings Inc. (CCO - Snapshot Report).
We currently maintain an Outperform recommendation on the stock.
Please login to Zacks.com or register to post a comment.