SUNNY ISLES BEACH, Fla. - Icahn Enterprises L.P. (NASDAQ:IEP) and Icahn Enterprises Finance Corp. announced the upsizing and pricing of a $750 million offering of 9.000% Senior Unsecured Notes due 2030. The amount represents a $250 million increase from the initial $500 million offering. The offering is slated to close on May 28, 2024, subject to customary closing conditions.
The notes, which will be guaranteed by Icahn Enterprises Holdings L.P., are not registered under the Securities Act of 1933 and are being offered in a private placement to qualified institutional buyers in the United States and to certain non-U.S. persons in offshore transactions. They will be issued under an indenture with Wilmington Trust, National Association as trustee.
Proceeds from the offering are intended to fully redeem the Issuers' existing 6.375% Senior Unsecured Notes due 2025. The completion of the sale of the debt securities is not assured and is contingent on market conditions and other factors.
Icahn Enterprises is a diversified holding company with business interests that include investment, energy, automotive, food packaging, real estate, home fashion, and pharma. The company's forward-looking statements indicate a range of risks and uncertainties that could impact their business and financial performance. These include economic downturns, competition, operational costs, and various industry-specific challenges, such as those faced by their energy and automotive segments.
This news article is based on a press release statement from Icahn Enterprises L.P. and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
In light of Icahn Enterprises L.P.'s recent announcement regarding their Senior Unsecured Notes offering, investors may find the following InvestingPro Insights particularly relevant. The company has shown resilience over the years, maintaining dividend payments for two decades, a testament to its commitment to shareholder returns. This is underscored by a significant dividend yield of 22.25%, which stands out in the current market environment.
From a financial perspective, Icahn Enterprises (NASDAQ:IEP) holds a market capitalization of approximately $7.88 billion. Despite experiencing a decrease in revenue over the last twelve months by 16.52%, the company's gross profit stands at $936 million, with a gross profit margin of 8.81%.
These figures suggest that while the company has faced challenges, it still manages to generate a substantial absolute gross profit. Moreover, with liquid assets exceeding short-term obligations, the company's liquidity position appears solid.
InvestingPro Tips indicate that net income is expected to grow this year, providing a potential upside for investors. Moreover, analysts predict the company will be profitable this year, which could be a pivotal factor for those considering investing in IEP.
For those interested in further analysis and additional InvestingPro Tips, the platform offers a comprehensive suite of tools and insights for Icahn Enterprises at https://www.investing.com/pro/IEP. There are 7 additional InvestingPro Tips available, which could further inform investment decisions. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While the company's P/E ratio stands at -16.77, indicating that it has not been profitable over the last twelve months, the company's strategic financial maneuvers, including the upsizing of its Senior Unsecured Notes offering, could be geared towards strengthening its financial structure and positioning for future profitability.
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