P. H. Glatfelter
) has priced its $250 million of senior notes offering due 2020.
The notes bear an interest of 5.375% per annum. The offering is
expected to close on October 3.
Glatfelter intends to use the net proceeds from the offering to
finance its previously announced cash tender offer of its
outstanding senior notes (due 2016) bearing an interest of 7
%, to retire any notes not purchased in such tender offer through
at least one redemptions, any consequent tender offers or open
market purchases as well as repay amounts outstanding under its
credit facility and for general corporate purposes.
Glatfelter had announced to issue $200 million of senior notes few
days back. Thus, this new offering increased the senior notes
offering by $50 million.
Glatfelter reported second-quarter 2012 adjusted earnings of 12
cents per share, beating the Zacks Consensus Estimate of 5 cents
and exceeding the year-ago quarter earnings of 7 cents. Revenues
decreased 3.4% year over year to $386 million, missing the Zacks
Consensus Estimate of $399 million.
Glatfelter had cash and cash equivalents of $23.4 million as of
June 30, 2012, compared with $38.3 million as of December 31, 2011.
The company had $218 million in debt as of June 30, 2012, lower
than $227 million as of December, 31, 2011.
The debt-to-capital ratio was 29.7% as of June 30, 2012, lower than
31.6% as of December 31, 2011. In the stringent regulatory
background, the offering of the senior notes is expected to further
strengthen the company's balance sheet as well as support its
Pennsylvania-based Glatfelter is a global manufacturer of specialty
papers and fiber-based engineered materials. It has operations in
the U.S. and also in international regions including facilities in
Canada, Germany, France, the UK and the Philippines, a
representative office in China and a sales and distribution office
Glatfelter has made significant progress in diversifying its
businesses, achieve growth in targeted areas and cultivate new
revenue streams. However, the company faces tough competition from
leading companies like
Glatfelter currently retains a short-term Zacks #2 Rank (Buy). We
have a long-term Neutral recommendation on the stock.
GLATFELTER (GLT): Free Stock Analysis Report
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