SPX Corp to Purchase $500M Senior Notes - Analyst Blog


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SPX Corporation ( SPW ) recently announced that it has released a tender offer to purchase Senior Notes worth $500 million in aggregate principal amount and scheduled to mature in 2014 at the rate of 7 5/8%.

The tender offer consideration entails the holders to receive $1,042.28 for each $1,000 notes tendered. Apart from this, they can also avail an additional consent payment of $20, provided they tender the notes before the consent payment deadline of Jan 22, 2014. The holders can also withdraw or revoke the tender before the consent payment deadline. The purchase will be made in cash and the offer is scheduled to terminate on Feb 5.

The holders are also entitled to receive unpaid accrued interest on purchased notes from the date of last payment onward for the notes accepted for exchange by the company.

SPX Corporation intends to implement the proposed amendments once it achieves the required number of consents. The reduction in debt by dissolving these bonds will aid the company in reducing its annual interest burden. The expense for paying off this debt will be recorded in the company's first quarter 2014 results.

SPX Corporation maintains a sound and flexible balance sheet with ample liquidity that enables it to capitalize on potential acquisition opportunities to fuel its top-line growth. In third quarter 2013, the company reported a 293.6% year-over-year increase in its net cash while net cash flow from operating activities surged 718.6% year over year. We remain encouraged by the organic growth of the company and expect it to continue its bull run in the coming quarters.

Other Stocks to Consider

SPX Corporation currently carries a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now include Motorcar Parts of America Inc. ( MPAA ), having a Zacks Rank #1 (Strong Buy), and Spartan Motors Inc. ( SPAR ) and  LKQ Corp. ( LKQ ), both carrying a Zacks Rank #2 (Buy).

LKQ CORP (LKQ): Free Stock Analysis Report

MOTORCAR PARTS (MPAA): Free Stock Analysis Report

SPARTAN MOTORS (SPAR): Free Stock Analysis Report

SPX CORP (SPW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: LKQ , MPAA , SPAR , SPW

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