OUTFRONT Media Inc. (OUT - Free Report) recently announced the pricing of the company’s 6.25% senior notes worth $400 million through its two wholly-owned subsidiaries. The notes are priced at 100.0% of the principal amount.
The move is a strategic fit as it will bolster financial flexibility. The company intends to utilize net proceeds from the offering, coupled with its existing cash balance, to repay the outstanding balance of $400 million under its revolving credit facility, along with the fees and expenses of the notes offering. The offering of notes will be guaranteed by the company, and its direct and indirect subsidiaries on a senior unsecured basis.
The newly-issued debt security will mature in 2025. The offering is expected to close on May 15, 2020, subject to closing conditions.
Outfront Media’s efforts to bolster its liquidity in these trying times and tap the debt market amid a low interest-rate environment are a strategic fit.
Moreover, per its recent earnings release, the company exited first-quarter 2020 with unrestricted cash of $487.8 million and $3.5 million of availability under its $500-million revolving credit facility, net of $1.5 million of issued letters of credit. The company has about $232.5 million under its at-the-market (ATM) equity program.
The company’s better-than-expected results reflect higher average revenue per display, increased revenues from digital-billboard conversions and digital transit displays. However, with the uncertainties prevailing due to the coronavirus pandemic, advertising spends of companies will likely decline, which will hurt its prospects in the near term.
Over the past 12 months, shares of this Zacks Rank #5 (Strong Sell) company have depreciated 55.1% compared with the industry's fall of 17.7%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Innovative Industrial Properties, Inc.’s (IIPR - Free Report) Zacks Consensus Estimate for 2020 funds from operations (FFO) per share moved marginally upward to $5.34 over the past month. The stock currently flaunts a Zacks Rank of 1.
One Liberty Properties, Inc.’s (OLP - Free Report) Zacks Consensus Estimate for the current-year FFO per share moved 2.2% north to $1.89 over the past month. The stock sports a Zacks Rank of 1, at present.
Postal Realty Trust, Inc.’s (PSTL - Free Report) Zacks Consensus Estimate for the ongoing year’s FFO per share moved 3.7% upward to $1.11 in two months’ time. The stock currently sports a Zacks Rank of 1.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>