Second of its kind in a week,
Leucadia National Corporation
) announced pricing of $250 million worth of senior unsecured
fixed rate notes. The notes, due to expire on Oct 23, 2043, has
been offered at 98.781% of the principal amount.
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These senior notes carry a coupon rate of 6.625%. Interest will
be paid semi-annually on Apr 23 and Oct 23. The first interest
installment will commence from Apr 23, 2014. These notes are
expected to yield 6.720% on maturity.
The offering is anticipated to contribute roughly $244.8 million,
before expenses, to Leucadia. Net proceeds from the issuance are
expected to be used by the company for general corporate
Leucadia's senior unsecured notes issuance has been rated 'BBB-
(Stable)' by Fitch Ratings while ratings of 'Ba2 (Stable)' and
'BBB (Stable)' are expected from Moody's Investors Service
and Standard & Poor's, respectively.
The offering will consummate on Oct 24, 2013.
Prior to this offering, Leucadia had issued $750 million worth of
5.5% Senior Notes due to expire on Oct 18, 2023. Proceeds from
the issuance, likely $736.4 million before expenses, are expected
to be used by the company for the repayment, repurchase and/or
redemption of 8.125% senior notes maturing in 2015 as well as for
general corporate purposes.
Exiting the second quarter 2013, long-term debt balance of
Leucadia stood at $7,559.5 million, down 2.6% sequentially.
Interest paid during the quarter totaled $21.2 million, roughly
flat year over year. Increase in debt levels will increase the
company's financial obligations further in the quarters ahead.
Leucadia is engaged in beef processing, manufacturing, gaming
entertainment, real estate activities, medical product
development operations and various other investment-related
activities in the United States. The company has a market
capitalization of $10.5 billion.
Others companies to watch out for in the industry are
) with a Zacks Rank #1 (Strong Buy) while
Honeywell International Inc.
) each come with a Zacks Rank #2 (Buy).