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W. R. Berkley (WRB) Prices 3.550% $400 Senior Unsecured Notes
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W. R. Berkley Corporation (WRB - Free Report) announced the pricing of $400 million aggregate principal amount of senior notes. The notes carry an interest rate of 3.550% and are scheduled to mature in 2050.
The company plans to deploy the net proceeds to repay $76.5 million 8.700% Senior Notes due 2022 and $350 million 4.625% Senior Notes due 2022.
The company displayed prudence by issuing senior notes amid a low interest rate environment to procure funds and enhance financial flexibility without affecting liquidity. W. R. Berkley’s cash and cash equivalents surged 131.7% at 2020 end from 2019 end level.
Last year, the company issued senior notes thrice. In May 2020, this Zacks Rank #3 (Hold) insurer issued $300 million 4.00% Senior Notes due 2050. Thereafter, in September 2020, it issued an additional $170 million 4.00% senior notes due 2050 and $250 million 4.25% subordinated debentures due 2060
By capitalizing on the low interest rate environment, the company is also attempting to reduce its interest burden, thus facilitating margin expansion. Interest expenses dropped 1.9% in 2020. Also, the company’s operational strength should enable it to service debt uninterruptedly, thereby maintaining the stock’s creditworthiness.
However, as of Dec 31, 2020, long-term debt of the company was about $2.7 billion, up 3.8% from 2019 end. Debt-to-equity ratio was 30.2 at 2020 end, almost in line with 2019 end level. Nonetheless, W. R. Berkley maintains a solid balance sheet with sufficient liquidity and strong cash flows.
Shares of W. R. Berkley have rallied 11.6% year to date compared with the industry’s increase of 10.4%. Increasing contribution from Insurance business, rate increases, reserving discipline, growing international business, solid balance sheet and prudent capital management policy should drive shares.
Stocks to Consider
Some better-ranked stocks from the same industry are Markel Corporation (MKL - Free Report) , CNA Financial Corporation (CNA - Free Report) and Alleghany Corporation .
CNA Financial delivered an earnings surprise of 16.04% in the last reported quarter. It carries Zacks Rank #2 (Buy).
Alleghany delivered an earnings surprise of 48.79% in the last reported quarter. It carries Zacks Rank #2
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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W. R. Berkley (WRB) Prices 3.550% $400 Senior Unsecured Notes
W. R. Berkley Corporation (WRB - Free Report) announced the pricing of $400 million aggregate principal amount of senior notes. The notes carry an interest rate of 3.550% and are scheduled to mature in 2050.
The company plans to deploy the net proceeds to repay $76.5 million 8.700% Senior Notes due 2022 and $350 million 4.625% Senior Notes due 2022.
The company displayed prudence by issuing senior notes amid a low interest rate environment to procure funds and enhance financial flexibility without affecting liquidity. W. R. Berkley’s cash and cash equivalents surged 131.7% at 2020 end from 2019 end level.
Last year, the company issued senior notes thrice. In May 2020, this Zacks Rank #3 (Hold) insurer issued $300 million 4.00% Senior Notes due 2050. Thereafter, in September 2020, it issued an additional $170 million 4.00% senior notes due 2050 and $250 million 4.25% subordinated debentures due 2060
By capitalizing on the low interest rate environment, the company is also attempting to reduce its interest burden, thus facilitating margin expansion. Interest expenses dropped 1.9% in 2020. Also, the company’s operational strength should enable it to service debt uninterruptedly, thereby maintaining the stock’s creditworthiness.
However, as of Dec 31, 2020, long-term debt of the company was about $2.7 billion, up 3.8% from 2019 end. Debt-to-equity ratio was 30.2 at 2020 end, almost in line with 2019 end level. Nonetheless, W. R. Berkley maintains a solid balance sheet with sufficient liquidity and strong cash flows.
Shares of W. R. Berkley have rallied 11.6% year to date compared with the industry’s increase of 10.4%. Increasing contribution from Insurance business, rate increases, reserving discipline, growing international business, solid balance sheet and prudent capital management policy should drive shares.
Stocks to Consider
Some better-ranked stocks from the same industry are Markel Corporation (MKL - Free Report) , CNA Financial Corporation (CNA - Free Report) and Alleghany Corporation .
Markel delivered an earnings surprise of 75.11% in the last reported quarter. It sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CNA Financial delivered an earnings surprise of 16.04% in the last reported quarter. It carries Zacks Rank #2 (Buy).
Alleghany delivered an earnings surprise of 48.79% in the last reported quarter. It carries Zacks Rank #2
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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