Arconic (ARNC) Wraps Up Early Redemption of Notes & Bonds


Shutterstock photo

Arconic ARNC said that it has wrapped up the early redemption of all its 6.50% bonds due 2018 and 6.75% notes due 2018 in the total principal amount of roughly $100 million and $344.8 million, respectively.

Holders of the 6.50% bonds were paid $1,049.99 per $1,000 total principal amount of the bonds, or $105.1 million, along with accrued and unpaid interest. Holders of the 6.75% notes got $1,054.26 per $1,000 total principal amount of the notes, or $363.5 million, along with accrued and unpaid interest.

The redemptions are part of the company's de-leveraging program. The actions taken by Arconic so far in 2017 have resulted in a reduction of its total debt by around $1.25 billion.

Arconic has outperformed the Zacks categorized Mining-Non Ferrous industry year to date, aided by strong demand for its products across aerospace and automotive markets and its efforts to improve cost structure through company-wide productivity actions. The company's shares have gained around 43.5% over this period, compared with roughly 6.7% gain recorded by the industry.


Arconic is seeing healthy demand trends in the aerospace market. The company is well placed to gain from major contract wins in aerospace. Arconic is also well positioned to capture the growing demand for aluminum sheet stemming from the transition of the North American auto industry to lightweighting.

Arconic also remains focused on capital efficiency, growth actions, cost cutting and improving margin in 2017. The company's cost reduction actions and productivity improvements across its businesses should lend support to its bottom line this year. The company sees revenues in the range of $11.8 billion to $12.4 billion and adjusted earnings of $1.10 to $1.20 per share for 2017.

Arconic is a Zacks Rank #2 (Buy) stock.

Arconic Inc. Price and Consensus

Arconic Inc. Price and Consensus | Arconic Inc. Quote

Other Stocks to Consider

Other well-placed stocks in the basic materials space include Huntsman Corporation HUN , BASF SE BASFY and The Chemours Company CC , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Huntsman has an expected long-term earnings growth of 7%.

BASF has an expected long-term earnings growth of 8.9%.

Chemours has an expected long-term earnings growth of 15.5%.

Looking for Stocks with Skyrocketing Upside?
                                                                                                                              Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BASF SE (BASFY): Free Stock Analysis Report

Huntsman Corporation (HUN): Free Stock Analysis Report

Chemours Company (The) (CC): Free Stock Analysis Report

Arconic Inc. (ARNC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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



This article appears in: Investing , Business , Stocks
Referenced Symbols: BASFY , HUN , CC , ARNC


More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research
Follow on:








Research Brokers before you trade

Want to trade FX?





Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com