PAWTUCKET, R.I. - Hasbro, Inc. (NASDAQ: NASDAQ:HAS), a global play and entertainment company, has priced a $500 million public offering of 6.050% notes due in 2034, with interest payments to begin from November 14, 2024. This offering is contingent on standard closing conditions and is expected to conclude around May 14, 2024.
The net proceeds from the sale, estimated at $495 million after accounting for the underwriting discount but before offering expenses, are intended for general corporate use. This includes the redemption or repayment of existing debt.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Scotia Capital (USA) Inc. are serving as the joint book-running managers for the transaction.
The offering is being conducted in accordance with an effective shelf registration statement, including a base prospectus dated May 6, 2024, filed with the Securities and Exchange Commission (SEC). The final prospectus supplement, which will detail the offering terms alongside the base prospectus, is to be filed with the SEC and made available on its website. Interested parties can obtain these documents through the contacts provided for the respective book-running managers.
Hasbro is known for its vast portfolio of over 1,800 brands, including MAGIC: THE GATHERING, DUNGEONS & DRAGONS, and others. The company's mission focuses on creating joy and community through play and storytelling. Hasbro has been acknowledged for its corporate citizenship, featuring in lists such as the 100 Best Corporate Citizens by 3BL Media.
InvestingPro Insights
As Hasbro, Inc. (NASDAQ: HAS) prepares for its public offering of notes, the company's financial health and market performance are of keen interest to investors. According to InvestingPro data, Hasbro's market capitalization stands at approximately $8.54 billion, reflecting its significant presence in the play and entertainment industry. Although the company has faced challenges, with a revenue decline of 16.42% over the last twelve months as of Q1 2024, it still maintains a robust gross profit margin of 50.21%.
InvestingPro Tips highlight that Hasbro has maintained dividend payments for 44 consecutive years, demonstrating a strong commitment to returning value to shareholders, which is underscored by a current dividend yield of 4.58%. This is particularly relevant as the company engages in debt financing, which could reassure investors of its ability to meet financial obligations. Moreover, analysts predict that Hasbro will be profitable this year, which could signal a turnaround from the recent period where the company was not profitable.
The stock has experienced a large price uptick over the last six months, with a 42.37% price total return, suggesting a growing investor confidence that may be tied to the anticipation of net income growth and positive earnings revisions by analysts. Investors interested in a deeper dive into Hasbro's financial outlook can explore additional InvestingPro Tips, with over 8 more listed on the platform. To access these insights, consider using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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