Top Consumer Stocks
Consumer stocks declined this afternoon, although shares of consumer staples companies in the S&P 500 still continued to outperform most other industry sectors, falling less than 1.0% while shares of consumer discretionary firms in the S&P 500 were dropping almost 2.0%.
Among consumer stocks moving on news:
-Dollar Tree ( DLTR ) see-sawed between moderate gains and losses on Friday, more recently sinking slightly more than 1% after the discount retailer late Thursday priced a $4 billion public offering of senior notes. The offering consisted of $750 million of senior floating rate notes due 2020 together with $1 billion each of 3.7% senior notes due 2023 and $1 4% senior notes due due 2025 along with $1.25 billion of 4.2% senior notes due 2028. The company expects to use net proceeds from the current offering to repay existing debt.
In other sector news:
- Southwest Airlines Company ( LUV ) had its wings clipped Friday, with shares of the discount airline falling almost 2%, despite reporting a 3.7% increase in revenue passenger miles during March, rising to 11.7 billion miles flown from 11.3 billion miles in March 2017. Available seat miles last month climbed 2.4% over year-ago levels to 13.8 billion miles. For Q1, revenue passenger miles grew 3.71% to 30.4 billion miles from 29.3 billion miles flown during the first three months of 2017. It also flew 37.4 available seat miles during Q1, rising 1.8% over year-ago levels while its Q1 load factor added 1.6 percentage points to 79.9% during Q1 2017.
- New Media Investment Group ( NEWM ) dropped nearly 8% on Friday after the newspaper publisher said it has priced a $99 million public offering of 6 million shares of its common stock at $16.50 a share, or a 4.3% discount to Thursday's closing price. Underwriters also received a 30-day option to buy another 900,000 shares. Net proceeds will fund general corporate activities.
- The Stars Group Inc. (TSG,TSGI.TO) was fractionally lower today, paring roughly half of a 1% decline soon after the opening bell that followed the video poker company saying it has increased its U.S. dollar- and Euro- denominated first lien term loans by $2.17 billion and EUR500 million, respectively. It also negotiated an extension for the loans until April 6, 2025, and reduced its interest cost by 50 basis points to LIBOR plus 3.00% and Euribor plus 3.25%, respectively. The company's revolving credit facility grew to $225 million from $100 million previously and was priced at LIBOR plus 2.75% with a new April 6, 2025, due date. The Stars Group used $95 million from the new term loans to fully repay its existing, higher-cost dollar-denominated term loan and also is expecting to use another $250 million to pay for its purchase of another 18% equity stake in Crownbet Holdings Pty Ltd and Crownbet's acquisition of William Hill Australia Holdings Pty Ltd.