) has recently announced the pricing of senior unsecured notes
aggregating $250 million. These bonds carry a coupon rate of
3.70% and are due to mature in 2023. The offering is expected to
close on Nov 18, subject to customary closing conditions.
Corning stated that the net proceeds would be used for general
J.P. Morgan Securities LLC and Deutsche Bank Securities Inc.
will be acting as joint book-running managers and under-writers
for the offering.
Corning is a leading manufacturer of specialty glass and
ceramics. In the recently concluded third quarter, the company
spent $146 million on cash dividends and used $209 million to
repurchase its common stock.
At quarter-end, the company had cash and short-term
investments balance of $5.45 billion. Including long-term
liabilities and short-term debt, the net cash position was just
$85 million at the end of the quarter, up $24 million during the
quarter. Currently, the company's debt-to-total capitalization
ratio is only 11.5%, which will increase after the issuance of
We believe that Corning 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 the senior notes offering will bring down
its cost of capital, thus strengthening the company's balance
sheet and supporting its future growth.
Currently, Corning has a Zacks Rank #3 (Hold). Other stocks
that are performing well at current levels include
Melco Crown Entertainment Limited
Best Buy Inc.
Northern Oil And Gas Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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