) 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
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.
), having a Zacks Rank #1 (Strong Buy), and
Spartan Motors Inc.
), both carrying a Zacks Rank #2 (Buy).
LKQ CORP (LKQ): Free Stock Analysis Report
MOTORCAR PARTS (MPAA): Free Stock Analysis
SPARTAN MOTORS (SPAR): Free Stock Analysis
SPX CORP (SPW): Free Stock Analysis Report
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