Amphenol's Senior Notes Pricing - Analyst Blog
January 20 2012 - 6:30AM
Zacks
Recently announced,
Amphenol Corporation (APH) declared pricing of its
senior notes offering of principal amount $500 million due
2022.
These were issued at a price equal
to 99.75% of the face value and the closing date has been kept at
January 26, 2012. Book-running managers currently acting for this
notes offering are Barclays Capital Inc., Deutsche Bank Securities
Inc. and J.P. Morgan Securities LLC.
Amphenol intends to use the
proceeds from this offering as repayment of the dues still
outstanding from the development of its revolving credit
facility.
The company very recently reported
its 2011 fourth quarter financial results, whereby sales dropped
0.2% year over year to $949 million which, however, was higher than
management’s expectations. Net income came in at 73 cents per share
beating our quarterly Zacks Consensus Estimate of 70 cents per
share. Management purchased close to 3 million shares in the
quarter. The new facility’s limited production capacity
deteriorated sales by around $7 million in the fourth quarter.
The company needs to be forward
looking in its approaches as it is obliged to contend with ominous
competitors such as Thomas & Betts Corp.
(TNB), Methode Electronics Inc. (MEI) and
Molex Inc. (MOLX) in the industry.
We currently have a Zacks Consensus
Estimate of $3.26 and $3.49 for fiscal years 2012 and 2013,
respectively.
Headquartered at Wallingford,
Connecticut and established in 1932, Amphenol Corp. is actually a
portmanteau of its original name, American Phenolic Corp. The
company primarily deals with the manufacturing and design of
electronic and fiber optic connectors. Coaxial cables and other
forms of cables apart from interconnect systems further diversifiy
its product portfolio. Operating from over 60 countries worldwide,
it remains a highly reputed S&P Midcap 400 index company with a
current employee database of around 39,000 people.
In the short run, we have a Zacks
#2 Rank for Amphenol, which translates into a short-term rating of
Buy. However, we currently have a long-term rating of Neutral for
the company’s stock.
AMPHENOL CORP-A (APH): Free Stock Analysis Report
METHODE ELECT-A (MEI): Free Stock Analysis Report
MOLEX INC (MOLX): Free Stock Analysis Report
THOMAS & BETTS (TNB): Free Stock Analysis Report
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