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Valspar Announces Debt Offering - Analyst Blog

The Valspar Corporation ( VAL ) agreed to sell $400 million aggregate principal amount of 4.200% senior notes due January 15, 2022.

The net proceeds from this offering will be used for general corporate purposes including repayment of a portion of its commercial paper borrowings and the repayment of $200 million principal amount of 5.625% Senior Notes due May 1, 2012 at maturity.

As of October 28, 2011, long-term debt was $679.8 million, down 27.9% from $943.2 million in the prior year.

In November 2011, Valspar announced its fourth-quarter 2011 results. Earnings rose 50% to 84 cents from last year's 56 cents, exceeding the Zacks Consensus Estimate of 70 cents. Adjusted net earnings excluded a non-cash impairment charge of $3.82 per share for goodwill and intangibles associated with the company's wood coatings and gelcoat product lines and $0.13 per share restructuring charge.

Including the after-tax non-cash impairment charge of $363.4 million, the reported net loss for the fourth quarter of 2011 was $295.7 million or $3.18 per share.

Quarterly sales jumped 19.4% year over year to $1.05 billion, driven by new business efforts, pricing and productivity, offset by rising raw material costs and challenging market conditions.

We are more optimistic on Valspar's long-term performance, which is likely to be driven by volume increases in both the Paint and Coatings categories.

Valspar competes with the likes of Sherwin Williams Company ( SHW ) and PPG Industries Inc . ( PPG ).

Valspar holds a short-term Zacks #1 Rank (Strong Buy) on the stock.

PPG INDS INC ( PPG ): Free Stock Analysis Report

SHERWIN WILLIAM ( SHW ): Free Stock Analysis Report

VALSPAR CORP ( VAL ): 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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