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Lamar (LAMR) to Raise 146.9M With Private Placement of Notes
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Lamar Advertising Company (LAMR - Free Report) offered and priced an additional $150-milion 4% senior notes offering. The notes will be offered by the company’s wholly-owned subsidiary, Lamar Media Corp, through an institutional private placement.
Specifically, the notes have been issued as additional notes to the existing 4% senior notes due 2030, which Lamar Media issued on Feb 6, 2020, with an aggregate principal amount of $400 million.
Subject to the customary closing norms, the offering is expected to close on or around Aug 19, 2020.
The company anticipates net proceeds (after the payment of fees and expenses) of $146.9 million from this offering. It expects to utilize the proceeds of this offering to address near-term debt maturities.
Notably, on Jul 30, 2020, the company stated its intention to redeem $267.5 million of $535 million in aggregate principal of outstanding 5% senior subordinated notes due 2023 on Aug 31. The remaining $267.5 million of aggregate principal amount will be redeemed by using the proceeds of the note offering along with cash on hand and borrowings under its revolving credit facility.
Any remaining proceeds will be used to fund working capital purposes or for general corporate needs.
Notably, Lamar’s efforts to strengthen its liquidity in these testing times and tap the debt market amid a low interest-rate environment are a strategic fit. Moreover, as of the second-quarter end, the company had liquidity of $1.1 billion, which consisted of $737.2 million availability under its revolving senior credit facility, $171.8 million available under the Accounts Receivable Securitization Program, and $177.1 million in cash and cash equivalents.
However, efforts to curb the coronavirus spread are affecting the broader economy, forcing many businesses to curtail their advertising expenses. With customers staying at homes, there is a dent in advertising values, which will likely hurt Lamar’s top-line growth in the near term.
Moreover, shares of this Zacks Rank #3 (Hold) company have lost 12.2% over the past year compared with the industry’s decline of 7.3%.
Terreno Realty Corporation’s (TRNO - Free Report) FFO per share estimate for 2020 has been revised marginally upward to $1.43 over the past month. It currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $1.49 over the past week. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Lamar (LAMR) to Raise 146.9M With Private Placement of Notes
Lamar Advertising Company (LAMR - Free Report) offered and priced an additional $150-milion 4% senior notes offering. The notes will be offered by the company’s wholly-owned subsidiary, Lamar Media Corp, through an institutional private placement.
Specifically, the notes have been issued as additional notes to the existing 4% senior notes due 2030, which Lamar Media issued on Feb 6, 2020, with an aggregate principal amount of $400 million.
Subject to the customary closing norms, the offering is expected to close on or around Aug 19, 2020.
The company anticipates net proceeds (after the payment of fees and expenses) of $146.9 million from this offering. It expects to utilize the proceeds of this offering to address near-term debt maturities.
Notably, on Jul 30, 2020, the company stated its intention to redeem $267.5 million of $535 million in aggregate principal of outstanding 5% senior subordinated notes due 2023 on Aug 31. The remaining $267.5 million of aggregate principal amount will be redeemed by using the proceeds of the note offering along with cash on hand and borrowings under its revolving credit facility.
Any remaining proceeds will be used to fund working capital purposes or for general corporate needs.
Notably, Lamar’s efforts to strengthen its liquidity in these testing times and tap the debt market amid a low interest-rate environment are a strategic fit. Moreover, as of the second-quarter end, the company had liquidity of $1.1 billion, which consisted of $737.2 million availability under its revolving senior credit facility, $171.8 million available under the Accounts Receivable Securitization Program, and $177.1 million in cash and cash equivalents.
However, efforts to curb the coronavirus spread are affecting the broader economy, forcing many businesses to curtail their advertising expenses. With customers staying at homes, there is a dent in advertising values, which will likely hurt Lamar’s top-line growth in the near term.
Moreover, shares of this Zacks Rank #3 (Hold) company have lost 12.2% over the past year compared with the industry’s decline of 7.3%.
Stocks to Consider
Omega Healthcare Investors, Inc.’s (OHI - Free Report) funds from operations (“FFO”) per share estimate for the ongoing year have been unchanged at $3.07 over the past month. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Terreno Realty Corporation’s (TRNO - Free Report) FFO per share estimate for 2020 has been revised marginally upward to $1.43 over the past month. It currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $1.49 over the past week. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>