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NCR Corporation recently announced the pricing of a senior unsecured notes offering worth $1.1 billion. The company stated that the notes would be issued in two tranches of different maturities, carrying different interest rates as well.
The company prices notes worth $650 million, having an annualized interest rate of 5% and maturity in 2028. Another senior note worth $450 million carries an annualized interest rate of 5.25% and matures in 2030. The company stated that both senior notes would be sold at 100% of the principal amount.
NCR intends to use the net proceeds, along with available cash balance, to redeem $1.3 billion worth of outstanding senior notes. These include $600 million aggregate principal amount of 5% senior notes due 2022 and $700 principal amount of 6.375% senior notes due 2023.
NCR stated that the new offering, along with redemption of old debts, would reduce its annual interest expense by $19 million. In 2019, the company had paid $197 million as interest expenses.
Borrowing costs continue to be low, enabling companies to obtain easy financing. With the U.S. treasuries offering low rates, corporate bonds and borrowings from banks are now witnessing high demand.
At the end of second-quarter 2020, NCR’s cash and cash equivalents totaled $1.68 billion compared with the $1.21 billion witnessed at the end of the first quarter. This was mainly driven by the issuance of $400 million worth of senior unsecured notes on Apr 13.
In the past few months, several companies have resorted to senior notes offerings to improve liquidity and sail through amid the pandemic-induced global economic and business disruptions. In June, HP Inc. (HPQ - Free Report) raised $3 billion through senior notes offerings. During the same month, Palo Alto networks (PANW - Free Report) and Agilent Technologies (A - Free Report) issued notes worth $1.75 billion and $500 million, respectively.
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NCR Corporation Prices Senior Notes Offerings Worth $1.1B
NCR Corporation recently announced the pricing of a senior unsecured notes offering worth $1.1 billion. The company stated that the notes would be issued in two tranches of different maturities, carrying different interest rates as well.
The company prices notes worth $650 million, having an annualized interest rate of 5% and maturity in 2028. Another senior note worth $450 million carries an annualized interest rate of 5.25% and matures in 2030. The company stated that both senior notes would be sold at 100% of the principal amount.
NCR intends to use the net proceeds, along with available cash balance, to redeem $1.3 billion worth of outstanding senior notes. These include $600 million aggregate principal amount of 5% senior notes due 2022 and $700 principal amount of 6.375% senior notes due 2023.
NCR stated that the new offering, along with redemption of old debts, would reduce its annual interest expense by $19 million. In 2019, the company had paid $197 million as interest expenses.
NCR Corporation Price and Consensus
NCR Corporation price-consensus-chart | NCR Corporation Quote
Borrowing costs continue to be low, enabling companies to obtain easy financing. With the U.S. treasuries offering low rates, corporate bonds and borrowings from banks are now witnessing high demand.
At the end of second-quarter 2020, NCR’s cash and cash equivalents totaled $1.68 billion compared with the $1.21 billion witnessed at the end of the first quarter. This was mainly driven by the issuance of $400 million worth of senior unsecured notes on Apr 13.
In the past few months, several companies have resorted to senior notes offerings to improve liquidity and sail through amid the pandemic-induced global economic and business disruptions. In June, HP Inc. (HPQ - Free Report) raised $3 billion through senior notes offerings. During the same month, Palo Alto networks (PANW - Free Report) and Agilent Technologies (A - Free Report) issued notes worth $1.75 billion and $500 million, respectively.
NCR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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