EnerSys (ENS - Free Report) , on Dec 5, proposed to offer $300 million worth of senior notes, set to mature in 2027. It is worth noting here that the offering will be private in nature, and will depend on satisfactory market and customary conditions.
Also, the company communicated that the senior notes (proposed to be offered) will be EnerSys’ unsecured obligations. However, these notes will be guaranteed by those subsidiaries (existing and future) of EnerSys which act as guarantors to the company’s existing 5% senior notes due 2023 and senior secured credit facilities.
Funds raised from notes offering will be used by EnerSys for repayment of borrowings under the existing revolving credit facility.
We believe these offerings of senior notes will increase EnerSys’ debts and in turn, might inflate its financial obligations and dampen profitability. However, repayment of debts using the offering proceeds will be a relief.
EnerSys’ Debt Profile
It is worth mentioning here that the company's long-term debt at the end of second-quarter fiscal 2020 (ended Sep 29, 2019) stood at $1,117.8 million. This balance reflects 86.4% increase from the year-ago figure.
Also, the company’s interest expenses in the quarter totaled $10.1 million, suggesting a rise of 57.4% from the year-ago quarter.
Zacks Rank, Estimates and Price Performance of EnerSys
The company, with approximately $3-billion market capitalization, currently carries a Zacks Rank #3 (Hold). It is poised to benefit from acquired assets and solid products portfolio. However, rising costs and unfavorable movements in foreign currencies are concerns. Also, a highly leveraged balance sheet can be detrimental.
In the past 60 days, earnings estimates for EnerSys have moved south. The Zacks Consensus Estimate for its earnings is pegged at $5.07 for fiscal 2020 (ending March 2020) and $6.04 for fiscal 2021 (ending March 2021), suggesting a decline of 2.1% and 0.5% from the respective 60-day-ago figures.
Enersys Price and Consensus
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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EnerSys (ENS - Free Report) , on Dec 5, proposed to offer $300 million worth of senior notes, set to mature in 2027. It is worth noting here that the offering will be private in nature, and will depend on satisfactory market and customary conditions.
Also, the company communicated that the senior notes (proposed to be offered) will be EnerSys’ unsecured obligations. However, these notes will be guaranteed by those subsidiaries (existing and future) of EnerSys which act as guarantors to the company’s existing 5% senior notes due 2023 and senior secured credit facilities.
Funds raised from notes offering will be used by EnerSys for repayment of borrowings under the existing revolving credit facility.
We believe these offerings of senior notes will increase EnerSys’ debts and in turn, might inflate its financial obligations and dampen profitability. However, repayment of debts using the offering proceeds will be a relief.
EnerSys’ Debt Profile
It is worth mentioning here that the company's long-term debt at the end of second-quarter fiscal 2020 (ended Sep 29, 2019) stood at $1,117.8 million. This balance reflects 86.4% increase from the year-ago figure.
Also, the company’s interest expenses in the quarter totaled $10.1 million, suggesting a rise of 57.4% from the year-ago quarter.
Zacks Rank, Estimates and Price Performance of EnerSys
The company, with approximately $3-billion market capitalization, currently carries a Zacks Rank #3 (Hold). It is poised to benefit from acquired assets and solid products portfolio. However, rising costs and unfavorable movements in foreign currencies are concerns. Also, a highly leveraged balance sheet can be detrimental.
In the past 60 days, earnings estimates for EnerSys have moved south. The Zacks Consensus Estimate for its earnings is pegged at $5.07 for fiscal 2020 (ending March 2020) and $6.04 for fiscal 2021 (ending March 2021), suggesting a decline of 2.1% and 0.5% from the respective 60-day-ago figures.
Enersys Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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