Flavors and fragrances major,
International Flavors & Fragrances Inc.
) is all set to raise funds through debt issuance and recently
priced $300 million worth of Senior Notes.
Public offer price of the notes have been fixed at 99.912% of
principal amount plus any accrued interest (if any). These debt
instruments are due to mature on May 1, 2023 and carry a 3.21%
yield to maturity. Coupon rate is 3.20% with interest payment due
twice a year on May 1 and Nov 1. The first interest installment
falls due on Nov 1, 2013.
The offering will consummate on Apr 4, 2013. The notes offered
have been awarded Baa1 (stable) rating from Moody's and BBB
(positive) from S&P.
International Flavors & Fragrances is likely to fetch
approximately $297 million as net proceeds, after underwriting
discounts and other estimate expenses. The company intends to use
the proceeds for general corporate purposes.
Exiting the fourth quarter 2012, International Flavors &
Fragrances had a long-term debt balance of $881.1 million, which
comprised 82.2% of senior notes. The funds raised were primarily
utilized to enhance the company's product portfolio and product
Over the long term, International Flavors & Fragrances hopes
to achieve around 4%-6% expansion in local currency sales, about
7%-9% operating profit growth and over 10% earnings per share
The current Zacks Consensus Estimate for the first quarter of
2013 is $1.12, representing a year-over-year increase of 11.8%.
Estimates for years 2013 and 2014 are $4.38 and $4.78, reflecting
annual growth of 10.0% and 9.2%, respectively.
International Flavors & Fragrances currently has a Zacks Rank
#3 (Hold). Other stocks to watch out for in the industry are
Avon Products Inc.
Inter Parfums Inc.
), each holding a Zacks Rank #1 (Strong Buy) while
Nu Skin Enterprises Inc.
) has a Zacks Rank #2 (Buy).
AVON PRODS INC (AVP): Free Stock Analysis
INTL F & F (IFF): Free Stock Analysis
INTER PARFUMS (IPAR): Free Stock Analysis
NU SKIN ENTERP (NUS): Free Stock Analysis
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