RICHMOND, Va. - The Brink’s Company (NYSE:BCO), a global leader in security-related services, announced the pricing of its upsized private offering of senior unsecured notes on Monday. The offering comprises $400 million in 5-year notes at an interest rate of 6.500% and $400 million in 8-year notes at a rate of 6.750%, both due to mature on June 15, 2029, and June 15, 2032, respectively.
The notes, which are guaranteed by Brink’s existing and future U.S. subsidiaries, are expected to close on June 12, 2024, subject to customary conditions. The proceeds are intended to redeem or repurchase the company’s outstanding 5.500% Senior Notes due 2025 and to repay a portion of its $1 billion revolving credit facility. Prior to these actions, some proceeds will be used for general corporate purposes and to temporarily reduce the outstanding borrowings under the same credit facility.
This offering marks an increase from the previously announced $400 million aggregate principal amount of 5-year notes, adding the series of 8-year notes to the investment opportunity. The notes are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and to non-U.S. persons in offshore transactions under Regulation S.
The Brink’s Company, with operations in 52 countries serving customers in over 100 countries, provides an array of services including cash management, digital retail solutions, and ATM managed services to financial institutions, retailers, government agencies, and other commercial enterprises.
The notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. They will be available only through a private offering memorandum.
This news is based on a press release statement from The Brink's Company (NYSE:BCO) and does not constitute an offer to sell or a solicitation of an offer to buy the notes. The release contains forward-looking statements that involve risks and uncertainties, including the successful closing of the offering and the intended use of proceeds. Actual results could differ materially from those anticipated due to various factors, including market conditions and regulatory considerations.
In other recent news, The Brink's Company announced its plans to offer $400 million in senior unsecured notes with a five-year maturity, aiming to manage the company's debts more effectively. The proceeds from this offering, combined with existing cash, are set to temporarily repay borrowings under Brink's $1 billion revolving credit facility. This financial maneuver is only open to qualified institutional buyers and non-U.S. persons outside the United States.
In terms of earnings, Brink's reported a significant increase in its first quarter 2024 earnings, with organic revenue growing by 12%. Notably, the company's ATM Managed Services (AMS) and Digital Retail Solutions (DRS) segments experienced an 18% revenue surge. Adjusted EBITDA rose by 15% to reach $218 million, marking the highest first quarter margins in over a decade at 17.7%.
The company has maintained its full-year guidance, which includes low-to-mid teens organic revenue growth and an adjusted EBITDA margin expansion of around 80 basis points. Earnings per share are projected to be between $7.30 and $8.00, with free cash flow expected to range from $415 million to $465 million. These recent developments indicate a strong start to the year for Brink's Company, with steady growth across various segments.
InvestingPro Insights
The Brink’s Company (NYSE:BCO) has recently made headlines with its strategic financial moves, and the latest data from InvestingPro provides a deeper insight into the company's financial health and market performance.
With a robust market capitalization of $4.61 billion, Brink's is positioned as a significant player in the security-related services industry. The company's dedication to shareholder returns is evident through its consistent dividend payments over the last 36 years and a notable dividend growth of 21.25% in the last twelve months as of Q1 2024.
Investors keeping an eye on Brink's valuation metrics will note the company's high P/E ratio of 38.74, which may indicate a premium market valuation relative to near-term earnings growth. Nonetheless, this is counterbalanced by the company's solid revenue growth of 5.99% over the same period, signaling an upward trajectory in its financial performance. Moreover, with a PEG ratio of 3.93, investors may want to consider the company's future earnings growth in their valuation assessments.
InvestingPro Tips highlight that management has been actively repurchasing shares, a sign that could be interpreted as confidence in the company's future prospects. Furthermore, the company's stock exhibits low price volatility, which might appeal to investors seeking stability in their portfolios. For those interested in exploring more about Brink’s Company, InvestingPro offers additional tips and metrics, which can be accessed through the InvestingPro platform. There are 14 more InvestingPro Tips available for Brink's Company that can provide further guidance for potential investors.
For readers looking to gain comprehensive insights and make informed investment decisions, consider subscribing to InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, where you can find a wealth of financial data and analysis tools tailored to your investment needs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.