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IDEX (IEX) Prices $500 Million Worth of Senior Notes Offering

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IDEX Corporation (IEX - Free Report) yesterday announced the pricing of its $500 million worth of senior notes offering. Subject to the fulfillment of customary conditions, the public offering of notes is expected to close on May 28, 2021.

The company’s shares lost 0.2% yesterday, ending the trading session at $223.84.

Inside the Headlines

As noted, the senior notes offered will carry a coupon rate of 2.625% and will mature on Jun 15, 2031. These notes will be considered as IDEX’s senior unsecured obligations. The company fixed the public offering price of the notes at 99.876% of the principal amount.

Interest on the senior notes will be paid out semi-annually — each on Jun 15 and Dec 15 — for the 2031 notes. The first interest payment will be made on Dec 15, 2021.

The company expects about $494.3 million of net proceeds from the offering, of which roughly $357.4 million is planned to be utilized in redeeming and repaying $350 million worth of 4.2% senior notes due to expire on Dec 15, 2021. Also, the net proceeds will be used to meet interest and redemption premiums, apart from general corporate purposes.

Notably, the offering’s rating is expected to be Baa2 by Moody’s, BBB by S&P and BBB+ by Fitch.

Earnings Projections and Price Performance

IDEX, with approximately $17 billion market capitalization, currently carries a Zacks Rank #2 (Buy). In the quarters ahead, the company is poised to gain from a diversified business structure, solid product portfolio, execution abilities and growth investments.

For 2021, the company anticipates adjusted earnings per share of $6.05-$6.20, higher than $5.65-$5.95 stated earlier. Also, it predicts earnings of $1.60-$1.63 per share for the second quarter.

In the past 30 days, the Zacks Consensus Estimate for IDEX’s earnings has been increased 3.9% to $6.12 for 2021 and 3.5% to $6.76 for 2022. Also, earnings estimates for the second quarter of 2021 have increased 8.8% to $1.60 per share.

In the past three months, the stock has gained 13.8% compared with the industry’s increase of 14.1%.

Other Stocks to Consider

Some other top-ranked stocks from the same space are Applied Industrial Technologies, Inc. (AIT - Free Report) , Barnes Group, Inc. (B - Free Report) and Graco Inc. (GGG - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Applied Industrial delivered an earnings surprise of 30.33%, on average, in the trailing four quarters.

Barnes delivered an earnings surprise of 19.45%, on average, in the trailing four quarters.

Graco delivered an earnings surprise of 28.28%, on average, in the trailing four quarters.

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