) declared senior notes pricing of its 1.75% Senior Notes with
principal amount $500 million, due to mature in 2017. The company
is likely to close the transaction on May 8, 2012.
Book-running managers currently acting for this notes offering
are J.P. Morgan Securities L.L.C., Merrill Lynch, Pierce, Fenner
& Smith Incorporated and Morgan Stanley & Co. LLC.
The net proceeds from the offering along with its cash balances
shall be used to repay the company's outstanding loans of nearly
$500 million which would then result in the termination of Altera's
Credit Agreement, dated August 31, 2007.
The company declared quite a weakened performance in its first
quarter financial results of 2012, reported on April 19, 2012.
Revenues dropped around 28% annually to reach $384 million in the
quarter. Margins were under pressure too as operating margin
declined substantially from 45.8% in the year-ago quarter to 30.4%
in the first quarter of 2012.
Furthermore, the company pertains to an industry where ominous
competition is prevalent. It should stay cautious of big players
Lattice Semiconductor Corporation
) as it traverses through 2012.
Moving forward, the company is hopeful of strong recovery in the
upcoming quarter of 2012 where it expects sales to be within the
range of $437.5 million - $452.9 million, rising approximately 14%
- 18% sequentially. The Zacks Consensus Estimate for the fiscal
years 2012 and 2013 stands at $1.69 and $2.15, representing 27.91%
year over year decline and 27.08% growth, respectively.
In the short run, the stock bears a Zacks #3 Rank, which
translates into a short-term Hold rating. Additionally, we
currently maintain a long-term Neutral recommendation on the
ALTERA CORP (ALTR): Free Stock Analysis Report
LATTICE SEMICON (LSCC): Free Stock Analysis
XILINX INC (XLNX): Free Stock Analysis Report
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