Amphenol's Senior Notes Pricing - Analyst Blog


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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: APH , MEI , MOLX , TNB

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