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Carlisle Prices Notes Offering, to Repay Debts With Proceeds
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Carlisle Companies Incorporated (CSL - Free Report) , on Feb 13, announced the pricing of $750 million worth of senior notes. Subject to the fulfilment of customary conditions, the public offering of notes is expected to close on Feb 28, 2020.
It is worth mentioning here that the company’s shares gained 1% last Friday, ending the trading session at $163.31.
Inside the Headlines
As mentioned, the notes — due to expire on Mar 1, 2030, and carrying a coupon rate of 2.750% — have been offered at 98.756% of the principal amount. Interest on notes will be paid semi-annually, each on Mar 1 and Sep 1. The first interest payment will be made on Sep 1, 2020.
Notably, the issuer has the option to redeem wholly or in parts the senior notes, prior to Dec 1, 2029.
Carlisle will use funds raised from the notes offering to redeem 5.125% senior notes that are due to expire in 2020. Also, the company may use the funds for general corporate purposes (that includes payment of buyout-related expenses).
We believe that offerings of senior notes will increase the company’s debts and in turn, might inflate its financial obligations and hurt profitability. However, measures relating to redeeming notes will be a relief.
Carlisle’s Debt Profile
The company has a highly leveraged balance sheet. At the end of 2019, the company’s long-term debts were at $1,341.4 million. Its interest expenses totaled $66.1 million in the year, reflecting 2.2% increase from the previous year.
In February 2020, the company amended and extended credit facility worth $1 billion. The facility will mature in 2025. The proceeds from this facility will be used for acquisitions, repaying existing debts, capital spending, general corporate purposes and others.
Zacks Rank, Estimate Trend and Price Performance
With a market capitalization of $9.1 billion, Carlisle currently carries a Zacks Rank #4 (Sell). In the past 30 days, the Zacks Consensus Estimate for its earnings has been lowered by 1% to $8.96 for 2020 and raised by 2.2% to $10.07 for 2021.
Carlisle Companies Incorporated Price and Consensus
In the past 60 days, earnings estimates for these stocks have improved for the current year. Further, positive earnings surprise for the last four quarters, on average, was 20.34% for Griffon, 0.40% for Graco and 5.36% for Dover.
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Carlisle Prices Notes Offering, to Repay Debts With Proceeds
Carlisle Companies Incorporated (CSL - Free Report) , on Feb 13, announced the pricing of $750 million worth of senior notes. Subject to the fulfilment of customary conditions, the public offering of notes is expected to close on Feb 28, 2020.
It is worth mentioning here that the company’s shares gained 1% last Friday, ending the trading session at $163.31.
Inside the Headlines
As mentioned, the notes — due to expire on Mar 1, 2030, and carrying a coupon rate of 2.750% — have been offered at 98.756% of the principal amount. Interest on notes will be paid semi-annually, each on Mar 1 and Sep 1. The first interest payment will be made on Sep 1, 2020.
Notably, the issuer has the option to redeem wholly or in parts the senior notes, prior to Dec 1, 2029.
Carlisle will use funds raised from the notes offering to redeem 5.125% senior notes that are due to expire in 2020. Also, the company may use the funds for general corporate purposes (that includes payment of buyout-related expenses).
We believe that offerings of senior notes will increase the company’s debts and in turn, might inflate its financial obligations and hurt profitability. However, measures relating to redeeming notes will be a relief.
Carlisle’s Debt Profile
The company has a highly leveraged balance sheet. At the end of 2019, the company’s long-term debts were at $1,341.4 million. Its interest expenses totaled $66.1 million in the year, reflecting 2.2% increase from the previous year.
In February 2020, the company amended and extended credit facility worth $1 billion. The facility will mature in 2025. The proceeds from this facility will be used for acquisitions, repaying existing debts, capital spending, general corporate purposes and others.
Zacks Rank, Estimate Trend and Price Performance
With a market capitalization of $9.1 billion, Carlisle currently carries a Zacks Rank #4 (Sell). In the past 30 days, the Zacks Consensus Estimate for its earnings has been lowered by 1% to $8.96 for 2020 and raised by 2.2% to $10.07 for 2021.
Carlisle Companies Incorporated Price and Consensus
Carlisle Companies Incorporated price-consensus-chart | Carlisle Companies Incorporated Quote
In the past three months, the company’s share price has increased 1.3% against the industry’s growth of 5.1%.
Stocks to Consider
Three better-ranked stocks are Griffon Corporation (GFF - Free Report) , Graco Inc. (GGG - Free Report) and Dover Corporation (DOV - Free Report) . While both Griffon and Graco currently sport a Zacks Rank #1 (Strong Buy), Dover carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for these stocks have improved for the current year. Further, positive earnings surprise for the last four quarters, on average, was 20.34% for Griffon, 0.40% for Graco and 5.36% for Dover.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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