Investment brokerage company,
Jefferies Group, Inc.
) recently raised funds amounting to $1 billion from the market
through issuance of senior notes in two tranches, one of $600
million and another of $400 million.
The first lot comprised 5.125% of Senior Unsecured Fixed Rate
Notes due to mature on January 20, 2023. These notes are expected
to yield 5.161% at maturity and were offered at 99.721% of the
The second lot consisted of 6.50% of Senior Unsecured Fixed Rate
Notes, maturing on January 20, 2043. The notes were issued at
98.79% of the principal amount and are expected to yield 6.593%
Moody's conferred a Baa3 (Stable) rating on these notes while a
BBB (Negative) rating was provided by both S&P and Fitch
credit rating agencies. Interest payments will be made
semi-annually with the first payment due to accrue on July 22,
2013. The proceeds from the borrowing are likely to be used for
repaying existing debts.
In November 2012, Jefferies Group announced a merger agreement
Leucadia National Corporation
), according to which, for each share, shareholders of Jefferies'
will receive 0.81 shares of Leucadia. The merger is expected to
consummate in the first quarter of 2013.
The Zacks Consensus Estimate for the fiscal first quarter 2013 is
36 cents per share, up 13.5% year over year. Estimates for fiscal
2013 and 2014 stand at $1.44 and $1.64 per share, representing
year-over-year increase of 18.0% and 14.2%, respectively.
Currently, Jeffries carries a Zacks #4 (Sell) Rank while its
nearest peer company,
Duff & Phelps Corporation
) has a Zacks #2 Rank (a short-term Buy rating).
DUFF&PHELPS CP (DUF): Free Stock Analysis
JEFFERIES GP-NW (JEF): Free Stock Analysis
LEUCADIA NATL (LUK): Free Stock Analysis
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