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Icahn Enterprises (IEP) Prices $455M Senior Notes Offering

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Icahn Enterprises L.P. (IEP - Free Report) announced the pricing of $455 million worth of senior notes. It is worth mentioning here that the issuers of the notes include Icahn Enterprises and Icahn Enterprises Finance Corp.

The proposal for the private placement of senior notes was announced by Icahn Enterprises on Apr 8. The company’s units have lost 0.8% yesterday, ending the trading session at $56.38.

Inside the Headlines

As communicated, the notes offered are due to mature in 2027 and carry a 5.250% coupon rate. The offering price was fixed at 102% of the principal amount plus interest (accrued from Nov 15, 2020). Notably, Icahn Enterprises Holdings L.P. will act as guarantor to the offered notes issued to qualified institutional buyers in the United States and non-U.S. persons.

Icahn Enterprises intends to use the proceeds from the offering to redeem senior notes due to mature in 2022 and carrying a coupon rate of 6.250%.

Upon the fulfillment of customary closing conditions, the notes offering is predicted to close on Apr 12, 2021.

Icahn Enterprises’ Debt Profile

The company’s long-term debts were $8.1 billion at the end of 2020 compared with $8.2 billion reported at the end of 2019. Interest expenses totaled $688 million in 2020, up 13.7% year over year.

Notably, Icahn Enterprises’ total debt to total capital was 46.5% at the end of the fourth quarter of 2020 and its times interest earned was -2.8X. This compares with the industry’s total debt to total capital of 65% and times interest earned of 2.9X.

Other companies from the same industry with total debt to total capital less than 65% include Crane Co. (CR - Free Report) , Danaher Corporation (DHR - Free Report) and Carlisle Companies Incorporated (CSL - Free Report) .

Zacks Rank, Price Performance and Earnings Estimate Trend

With a market capitalization of $13.6 billion, Icahn Enterprises presently carries a Zacks Rank #3 (Hold). The company benefits from its diversified businesses, acquired assets/businesses and healthy liquidity position. However, headwinds related to the pandemic are concerning.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past three months, Icahn Enterprises’ shares have gained 0.9% compared with 8.8% growth recorded by the industry.


Furthermore, the Zacks Consensus Estimate for the company’s bottom line is pegged at one cent per share of earnings for the first quarter and a loss of two cents for the second quarter of 2021, reflecting an improvement from a loss of one cent and no change from the respective 60-day-ago figures.

Icahn Enterprises L.P. Price and Consensus


Icahn Enterprises L.P. Price and Consensus

Icahn Enterprises L.P. price-consensus-chart | Icahn Enterprises L.P. Quote

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