Back to top

Analyst Blog

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 support@zacks.com or call 800-767-3771 ext.  9339.

WEX Inc. is offering 4.75% senior secured notes worth $400 million with maturity scheduled in 2023.
    
The proceeds from the issuance will be deployed to pay off the pending amount of the company’s senior secured credit facility and related expenses as well as for general corporate purposes.

WEX is expected to close the transaction on January 30, 2013. The new issuance will require the company to pay interests half-yearly.

As of Sep 30, 2012, the debt-to-capital ratio for the company was 0.28x which represented an improvement of 1 percentage point from 0.29x at 2011 end. However, the current issuance of $400 million will have no material impact on the debt-to-capital ratio.

The new issuance would require WEX to pay an annual interest of $19 million. Nevertheless, the company’s solid operational performance generates enough funds to service the debt uninterruptedly. Its interest expense in the third quarter reduced 14.3% year over year.

Last December, Equifax Inc. (EFX - Analyst Report), from the same industry, decided to offer $500 million aggregate principal amount of 3.30% senior notes. The company intended to utilize the proceeds from the issuance to fund its pending acquisition of certain credit services assets from CSC Credit Services Inc. partially.

WEX is expected to release its fourth-quarter and full year 2012 earnings results on Feb 6. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $1.06 translating into year-over-year improvement of 8.3%. Earnings for full year 2012 are expected to be $4.06 per share up 11.6% year over year.

WEX carries a Zacks Rank #3 (Hold). Other payment processors like Heartland Payment Systems Inc. (HPY - Snapshot Report) carries Zacks Rank #1 (Strong Buy) while MasterCard Incorporated (MA - Analyst Report) carries Zacks Rank #2 (Buy) and are worth noting.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E-HOUSE CHIN EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTL CONS AI ICAGY 33.30 +5.38%