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ATI Announces Upsizing and Pricing of Senior Notes Offering
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ATI Inc. (ATI - Free Report) recently announced that it has upsized and priced its senior notes public offering. It has agreed to offer a $425 million total principal amount of 7.25% Senior Notes due 2030. The principal amount has been increased from the previously disclosed offering size of $400 million. The Notes will pay interest semi-annually in arrears at a rate of 7.25% per year. It matures on Aug 15, 2030, unless redeemed or repurchased earlier.
ATI plans to utilize up to $300 million of the net proceeds to finance its pension liabilities and implement pension de-risking strategies, which may include annuitizations. The remaining proceeds are expected to be used for general company operations and liquidity.
The joint book-running managers for the offering are Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and J. P. Morgan Securities LLC. The Notes are being offered in accordance with an effective shelf registration statement.
The company’s long-term debt was $1,699.9 million, flat year over year, in the second quarter. Cash provided by operating activities was $68.1 million for the quarter against cash used in operating activities of $5.2 million in the previous year’s quarter.
Shares of ATI have gained 40.6% over the past year compared with 39.4% rise of its industry.
Image Source: Zacks Investment Research
The company, on its second-quarter call, said that the successful restart of ATI’s Albany, OR, titanium melt shop and ongoing brownfield expansion in Richland, WA, position it favorably to seize market opportunities. Confident about delivering for 2023 and beyond, ATI remains focused on executing its long-term strategy.
Better-ranked stocks worth considering in the basic materials space include PPG Industries Inc. (PPG - Free Report) , TimkenSteel Corporation and Carpenter Technology Corporation (CRS - Free Report) .
PPG, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 20.8% for the current fiscal year. The Zacks Consensus Estimate for PPG's earnings for the current fiscal year has been revised 1.6% upward in the past 60 days. It delivered an earnings surprise of 7.3% in each of the trailing four quarters, on average. PPG has gained around 4.4% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
TimkenSteel currently carrying a Zacks Rank #2 (Buy). The consensus estimate for TMST's current-year earnings has been revised 2.3% upward over the past 60 days. TimkenSteel’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 18.8%, on average. TMST shares are up around 26.4% in a year.
CRS, currently carrying a Zacks Rank #1, has a projected earnings growth rate of 200.9% for the current year. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 30.9%, on average. CRS shares are up around 62.8% in a year.
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ATI Announces Upsizing and Pricing of Senior Notes Offering
ATI Inc. (ATI - Free Report) recently announced that it has upsized and priced its senior notes public offering. It has agreed to offer a $425 million total principal amount of 7.25% Senior Notes due 2030. The principal amount has been increased from the previously disclosed offering size of $400 million. The Notes will pay interest semi-annually in arrears at a rate of 7.25% per year. It matures on Aug 15, 2030, unless redeemed or repurchased earlier.
ATI plans to utilize up to $300 million of the net proceeds to finance its pension liabilities and implement pension de-risking strategies, which may include annuitizations. The remaining proceeds are expected to be used for general company operations and liquidity.
The joint book-running managers for the offering are Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and J. P. Morgan Securities LLC. The Notes are being offered in accordance with an effective shelf registration statement.
The company’s long-term debt was $1,699.9 million, flat year over year, in the second quarter. Cash provided by operating activities was $68.1 million for the quarter against cash used in operating activities of $5.2 million in the previous year’s quarter.
Shares of ATI have gained 40.6% over the past year compared with 39.4% rise of its industry.
Image Source: Zacks Investment Research
The company, on its second-quarter call, said that the successful restart of ATI’s Albany, OR, titanium melt shop and ongoing brownfield expansion in Richland, WA, position it favorably to seize market opportunities. Confident about delivering for 2023 and beyond, ATI remains focused on executing its long-term strategy.
ATI Inc. Price and Consensus
ATI Inc. price-consensus-chart | ATI Inc. Quote
Zacks Rank & Key Picks
ATI currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include PPG Industries Inc. (PPG - Free Report) , TimkenSteel Corporation and Carpenter Technology Corporation (CRS - Free Report) .
PPG, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 20.8% for the current fiscal year. The Zacks Consensus Estimate for PPG's earnings for the current fiscal year has been revised 1.6% upward in the past 60 days. It delivered an earnings surprise of 7.3% in each of the trailing four quarters, on average. PPG has gained around 4.4% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
TimkenSteel currently carrying a Zacks Rank #2 (Buy). The consensus estimate for TMST's current-year earnings has been revised 2.3% upward over the past 60 days. TimkenSteel’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 18.8%, on average. TMST shares are up around 26.4% in a year.
CRS, currently carrying a Zacks Rank #1, has a projected earnings growth rate of 200.9% for the current year. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 30.9%, on average. CRS shares are up around 62.8% in a year.