See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Salesforce Inc. (CRM) - free report >>
Marvell Technology, Inc. (MRVL) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Salesforce Inc. (CRM) - free report >>
Marvell Technology, Inc. (MRVL) - free report >>
Image: Bigstock
CDW Issues Senior Notes Worth $2.5B to Fund Granite Buyout
CDW Corporation (CDW - Free Report) recently announced that its wholly owned subsidiaries, CDW LLC and CDW Finance Corporation, have issued and priced senior notes offering worth $2.5 billion to fund the proposed acquisition of Granite Parent Inc.
The net proceeds from the offering along with available cash on hand will be utilized for the payment of acquisition consideration and related fees and expenses. The offering is anticipated to close on Dec 1, 2021.
CDW had entered into an agreement in October this year to buy Granite from an affiliate of Clayton, Dubilier & Rice, for $2.5 billion in cash. The business technology retailer expects to complete the transaction in December 2021, subject to customary closing conditions.
We believe CDW is taking advantage of prevailing low borrowing interest rates. Borrowing costs continue to be low, enabling companies to obtain easy financing. With the global treasuries offering low rates, corporate bonds and borrowings from banks have been witnessing high demand lately.
CDW Corporation Price and Consensus
CDW Corporation price-consensus-chart | CDW Corporation Quote
In the past few months, several companies have issued senior notes to improve liquidity. In September this year, DXC Technology Company (DXC - Free Report) issued $1.35 billion worth of senior notes to lower its interest expenses significantly.
In June, Salesforce (CRM - Free Report) issued $8 billion worth of senior notes to fund the acquisition of Slack Technologies.
In April, Marvell Technologies (MRVL - Free Report) raised $2 billion through senior notes to fund the acquisition of Inphi Corporation. In March, NCR Corporation raised $1.1 billion by issuing 5.125% senior unsecured notes.
CDW, DXC and Salesforce carry a Zacks Rank #2 (Buy), while Marvell has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate of CDW, DXC, Salesforce, and Marvell are pegged at 13.1, 27.4%, 16.8% and 21.6%, respectively.
Shares of CDW, DXC, CRM and MRVL stocks have appreciated 48.6%, 22.1%, 31% and 54% in the YTD period, respectively.