WEX Prices Senior Notes - Analyst Blog
29 Enero 2013 - 8:40AM
Zacks
WEX Inc. (WXS) is
offering 4.75% senior secured notes worth $400 million with
maturity scheduled in 2023.
The proceeds from the issuance will be deployed to pay off the
pending amount of the company’s senior secured credit facility and
related expenses as well as for general corporate purposes.
WEX is expected to close the transaction on January 30, 2013. The
new issuance will require the company to pay interests
half-yearly.
As of Sep 30, 2012, the debt-to-capital ratio for the company was
0.28x which represented an improvement of 1 percentage point from
0.29x at 2011 end. However, the current issuance of $400 million
will have no material impact on the debt-to-capital ratio.
The new issuance would require WEX to pay an annual interest of $19
million. Nevertheless, the company’s solid operational performance
generates enough funds to service the debt uninterruptedly. Its
interest expense in the third quarter reduced 14.3% year over
year.
Last December, Equifax Inc. (EFX), from the same
industry, decided to offer $500 million aggregate principal amount
of 3.30% senior notes. The company intended to utilize the proceeds
from the issuance to fund its pending acquisition of certain credit
services assets from CSC Credit Services Inc. partially.
WEX is expected to release its fourth-quarter and full year 2012
earnings results on Feb 6. The Zacks Consensus Estimate for the
fourth quarter is currently pegged at $1.06 translating into
year-over-year improvement of 8.3%. Earnings for full year 2012 are
expected to be $4.06 per share up 11.6% year over year.
WEX carries a Zacks Rank #3 (Hold).
Other payment processors like Heartland Payment Systems
Inc. (HPY) carries Zacks Rank #1 (Strong Buy) while
MasterCard Incorporated (MA) carries Zacks Rank #2
(Buy) and are worth noting.
EQUIFAX INC (EFX): Free Stock Analysis Report
HEARTLAND PAYMT (HPY): Free Stock Analysis Report
MASTERCARD INC (MA): Free Stock Analysis Report
WEX INC (WXS): Free Stock Analysis Report
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