DENVER - Gates Industrial (NYSE:GTES) Corporation plc (NYSE:GTES), a global manufacturer of power transmission and fluid power solutions, announced its intention to offer $500 million in senior notes due 2029. The offering will be conducted by Gates Corporation, an indirect subsidiary of Gates Industrial, and fully guaranteed by Gates Industrial Holdco Limited and certain of its subsidiaries.
The proceeds from the sale of the notes, along with new term loans and cash on hand, are earmarked for refinancing existing indebtedness. The notes will not be registered under the Securities Act of 1933, as amended, or any state securities laws.
Consequently, they may not be offered or sold in the United States absent registration or an exemption from registration requirements. The sale is targeted at qualified institutional buyers and non-U.S. persons in compliance with applicable regulations.
Gates operates in various industrial and consumer markets, providing essential components for a wide array of applications in industries such as agriculture, construction, and energy, as well as everyday products like printers and vacuum cleaners. The company's reach extends to over 130 countries.
This move comes as part of Gates's financial strategy, as outlined in the press release, which also contains forward-looking statements. These statements are subject to a range of risks and uncertainties that could impact the company's operations and financial results.
Investors should note that the information regarding the senior notes offering is based on a press release statement from Gates Industrial Corporation plc . The release specifies that the announcement is neither an offer to sell nor a solicitation of an offer to buy any securities.
InvestingPro Insights
As Gates Industrial Corporation plc (NYSE:GTES) makes strategic moves to strengthen its financial footing through the offering of senior notes, insights from InvestingPro provide a deeper look into the company's current market standing and future prospects.
Gates's aggressive share buyback program is a strong signal of management's confidence in the company's value, which is supported by a high shareholder yield. This aligns with the company's financial strategy to optimize capital structure and deliver shareholder value.
InvestingPro data reveals a market capitalization of $4.66 billion, with a P/E Ratio of 19.23, reflecting the company's earnings relative to its share price. In terms of profitability, Gates has been successful over the last year, boasting a return of 50.68% on its stock price.
This performance is further highlighted by a strong return over the last three months of 24.41%, indicating positive momentum. Moreover, the company is trading near its 52-week high, with its price at 99.28% of this peak, a testament to investor optimism about its future trajectory.
For those interested in exploring further, there are additional InvestingPro Tips available at https://www.investing.com/pro/GTES, offering nuanced insights such as earnings revisions by analysts and the company's P/E ratio in relation to near-term earnings growth. Subscribers to InvestingPro can access these tips and more, and by using the coupon code PRONEWS24, new subscribers can enjoy an extra 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 13 additional InvestingPro Tips available for Gates Industrial Corporation plc, which could provide investors with a comprehensive understanding of the company's financial health and market position.
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