Joy Global Issues $500M Notes - Analyst Blog
07 October 2011 - 8:45PM
Zacks
Mining equipment manufacturer
Joy Global Corporation (JOYG) issued $500 million
unsecured notes yielding 5.125% interest per year and maturing on
October 21, 2021. The notes were offered at $99.151 (per $100.00
principal). The new note offering secured a 'BBB' rating from
Standard & Poor's Ratings Services.
Joy Global intends to utilize the
proceeds of issue to fund in part the acquisition of 41.1% of the
outstanding shares of Chinese coal mining equipment maker
International Mining Machinery Holdings Ltd. (“IMM”) and, if the
41.1% acquisition is successful, a tender offer to acquire up to
100% of the remaining shares. The company intends to use any
remaining balance of the proceeds for general corporate
purposes.
Long-term debts of the company were
$873.4 million as of July 29, 2011, up from $396.3 million as of
October 29, 2010. The debt-to-capitalization ratio was 32.6%. The
new issuance would further increase the debt-to-capitalization
ratio to 42.8%.
Interest expenses of the company in
the third quarter of fiscal 2011 rose by $2 million year over year
mainly due to higher debt levels from the year-earlier quarter.
With the issue of new debts, interest expenses will rise further in
the coming quarters.
Joy Global reported adjusted
earnings of $1.54 per share in the third quarter of 2011, which
surpassed both the year-ago figure of $1.11 per share and our
expectation of $1.50 per share.
During the earnings call the
company raised its earnings per share guidance for 2011 to a range
of $5.70 to $6.00 from $5.30 to $5.60. The guidance includes 10
cents accretion from LeTourneau's mining equipment business, net of
4 cents of inventory purchase accounting charges. It also takes
into account 11 cents of discreet tax benefit realized and 12 cents
of acquisition transaction costs incurred in the third quarter.
The Zacks Consensus Estimates for
fourth quarter fiscal 2011, fiscal year 2011 and fiscal year 2012
are currently pegged at $1.85 per share, $5.87 per share and $7.20
per share, respectively.
Joy Global currently retains a
Zacks #3 Rank, which translates into a short-term Hold rating. The
company competes with Caterpillar Inc. (CAT).
Mining equipment manufacturer and
service provider Joy Global Inc. is based in Milwaukee, Wisconsin.
The company caters to consumers all around the world and provides
manufacturing, distributing and servicing equipment for surface
mining, through its P&H Mining Equipment division, underground
mining, through its Joy Mining Machinery division and bulk material
conveyor systems, through its Continental Crushing & Conveying
division.
CATERPILLAR INC (CAT): Free Stock Analysis Report
JOY GLOBAL INC (JOYG): Free Stock Analysis Report
Zacks Investment Research
Joy Global (NASDAQ:JOYG)
Historical Stock Chart
From May 2024 to Jun 2024
Joy Global (NASDAQ:JOYG)
Historical Stock Chart
From Jun 2023 to Jun 2024