) recently announced that it has priced $300 million worth of
aggregate principal amount of 4.00% Senior Notes which are due in
2023. The company has priced the underwritten public offering at
99.532% of the principal amount. Flowserve expects the offering
to close on Nov 1, 2013. However, the closure date is subject to
the customary closing conditions.
Flowserve's net proceeds from this offering is estimated to be
about $295 million after paying for the discounts to
underwriters, the estimated fees for the offering and some other
The company intends to utilize the proceeds from this offering
to repay debt under its revolving credit facility and for general
corporate purposes. Flowserve ended third quarter 2013 with cash
and cash equivalents of $113.7 million compared with $304.3
million as of Dec 31, 2012.
The company's long-term debt had decreased to $839.2 million
compared with $869.1 million at year-end 2012. The note offering
is a part of this continued initiative to reduce debt.
Flowserve is one of the world's leading providers of fluid
motion and control products and services. Operating in more than
55 countries, the company produces engineered and industrial
pumps, seals and valves, as well as a range of related flow of
The company sells its products through direct sales force, as
well as through distributors and sales representatives. The
company operates in three divisions: Flowserve Pump, Flow Control
and Flow Solutions.
Flowserve currently holds a Zacks Rank #2 (Buy). Some other
important players in the industry include
), each boasting the same rank.
FLOWSERVE CORP (FLS): Free Stock Analysis
IDEX CORP (IEX): Free Stock Analysis Report
PARKER HANNIFIN (PH): Free Stock Analysis
To read this article on Zacks.com click here.