Agilent Technologies Inc.
) recently announced the pricing of senior unsecured notes
aggregating $600 million. These bonds carry a coupon rate of
3.875% and are due to mature in 2023. The offering is expected to
close on Jun 21, 2013, subject to customary closing
Agilent stated that the transaction proceeds would be used for
the redemption of its outstanding senior unsecured notes,
maturing Jul 2013. The remaining net proceeds would be used for
general corporate purposes, share repurchases and to pay the
expenses related to its previously announced restructuring
BNP Paribas Securities Corp., Citigroup Global Markets Inc.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and
Deutsche Bank Securities Inc. will be acting as joint
book-running managers for the offering.
Agilent Technologies is a broad-based original equipment
manufacturer (OEM) of test and measurement equipment. In the
recently concluded second quarter, the company spent $41 million
on cash dividends and used $140 million to repurchase its common
At quarter-end, Agilent had $2.11 billion in long-term debt on
its balance sheet. Currently, the company's debt-to-total
capitalization ratio is only 28.4%, which will increase after the
issuance of these notes.
We believe that Agilent has a strong balance sheet, which will
help the company to capitalize on investment opportunities and
make strategic acquisitions, further improving its growth
prospects. We believe that the senior notes offering will bring
down its cost of capital, thus strengthening the company's
balance sheet and supporting its future growth.
Currently, Agilent has a Zacks Rank #3 (Hold). Other stocks
that have been performing well and are worth a look include
Aspen Tech Inc
), all carrying a Zacks Rank #1 (Strong Buy).
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