CLEVELAND - Avient Corporation (NYSE: AVNT), a provider of specialized and sustainable material solutions, has initiated an offering of $650 million in senior notes due in 2031. The company revealed this Thursday that the proceeds from the senior notes offering will be utilized, along with existing cash, to redeem its outstanding 5.75% senior notes due in 2025, including the payment of related fees and expenses.
The offering is targeted at qualified institutional buyers according to Rule 144A under the Securities Act, and to non-U.S. persons outside the United States under Regulation S. The notes are exempt from the registration requirements of the Securities Act of 1933 and will not be available for sale in the U.S. without registration or an exemption from registration requirements.
This announcement does not serve as an offer to sell or a solicitation of an offer to buy securities, nor does it constitute a notice of redemption for the 2025 senior notes. The sale of these securities will not be lawful in any jurisdiction where prior registration or qualification under the securities laws of that jurisdiction is required.
Avient's decision to redeem its 2025 senior notes is part of the company's financial strategy, although it's important to note that the forward-looking statements included in the press release are not guarantees of future performance. They are subject to a variety of business risks and uncertainties that could cause actual results to differ materially from those projected.
The company cautions that while they believe their plans and assumptions to be prudent, future results could be impacted by risks, uncertainties, and assumptions that may not come to fruition. Investors are advised to consider all potential risks and uncertainties, and not to rely solely on these forward-looking statements.
The information in this article is based on a press release statement from Avient Corporation.
In other recent news, Avient Corporation has reported a positive Q2 2024 with sales of $850 million, a 3% increase compared to the same period last year. The company also raised its full-year guidance, predicting continued growth across various markets. Organic sales grew by 5%, driven by market share gains, new product specifications, and inventory restocking. Adjusted EBITDA margin improved to 16.9%, with adjusted earnings per share at $0.76, a 21% increase from the previous year. Avient expects a 9% increase in third-quarter earnings per share and has raised its full-year adjusted EBITDA guidance to $515 million to $540 million. The company anticipates year-over-year growth to continue, driven by volume growth from program wins, application wins, and sales strategy changes. The company is also focusing on sustainability, reporting a reduction in greenhouse gas emissions and improved ratings from independent agencies. Despite challenges faced in telecommunications and energy markets, improvements are anticipated later in the year. An Investor Day is scheduled for December 4th in New York City to share the company's strategic plan.
InvestingPro Insights
As Avient Corporation (NYSE: AVNT) moves forward with its financial strategy by offering $650 million in senior notes, the company's commitment to maintaining shareholder value is reflected in its consistent dividend history. According to InvestingPro Tips, Avient has raised its dividend for 13 consecutive years and has maintained dividend payments for 14 consecutive years. This suggests a strong focus on providing consistent returns to its investors.
InvestingPro Data highlights Avient's market capitalization at $4.28 billion, with a price-to-earnings (P/E) ratio of 36.59, indicating a high earnings multiple. This could suggest that investors have high expectations for the company's future earnings growth. Additionally, analysts have revised their earnings upwards for the upcoming period, which aligns with the company's expectation of net income growth this year, as noted by InvestingPro Tips.
On the performance front, Avient's stock is trading near its 52-week high, with a price that is 94.74% of that peak. Over the last month, the company has seen a strong return of 14.74%, further showcasing its recent market performance. These metrics, combined with the analyst predictions of profitability for the year, could be of interest to investors considering the company's bonds or equity.
For those seeking more in-depth analysis and additional insights, there are further InvestingPro Tips available, which can provide a more comprehensive understanding of Avient's financial health and market position.
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