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Qorvo Declares Pricing of $1B Senior Notes Offering

Leading provider of core technologies and RF solutions Qorvo, Inc.QRVO announced the pricing of two sets of unsecured senior notes offering totaling $1 billion. A $450 million principal amount of senior notes, due 2023, will carry an interest rate of 6.75%. Meanwhile, the second $550 million senior notes, due 2025, will carry an interest of 7.00%.

Qorvo expects to utilize the net proceeds from the debt offering for general corporate purposes, including share repurchases and repayment of debt under its revolving credit facility. At quarter end, cash and cash equivalents aggregated $325.6 million.

Moving forward, Qorvo expects to improve its liquidity and strengthen its balance sheet through prudent investment decisions. At the same time, Qorvo expects to further expand its margins through a continued focus on improving its productivity and efficiency levels. Although we expect the company to face short-term headwinds, it is likely to deliver solid results in the long term on the back of these initiatives.

The company expects revenues in second-quarter fiscal 2016 to be in the range of $690 million to $710 million, up 4% sequentially. Earnings per share are expected to be in the range of $1.05 to $1.15, well below the current Zacks Consensus Estimate of $1.25. However, new product launches and customer design activity are likely to generate significant revenue growth throughout calendar year 2015 and 2016.

Qorvo is a leading provider of core technologies and RF (radio frequency) solutions for mobile, infrastructure and aerospace & defense applications, Qorvo remains focused on developing highly integrated products that leverage its core competencies to enable its customers accelerate the time-to-market of their next-generation products. The company is expected to improve its financial performance as it aims to invest in building a wider technology, supporting better-than-industry growth, greater diversification, a richer mix of new products and an expanding gross margin.

Qorvo presently holds a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now include NeoPhotonics Corporation. NPTN , carrying a Zacks Rank #1 (Strong Buy). PMC-Sierra Inc PMCS and Federal Signal Corp FSS , both carrying a Zacks Rank #2 (Buy).

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PMC-SIERRA INC (PMCS): Free Stock Analysis Report

FED SIGNAL CP (FSS): Free Stock Analysis Report

NEOPHOTONICS CP (NPTN): Free Stock Analysis Report

QORVO INC (QRVO): 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.


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

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