CHANDLER, Ariz. - Insight Enterprises Inc. (NASDAQ: NASDAQ:NSIT), a global provider of information technology solutions, announced its intention to offer $500 million in senior notes due in 2032. The company stated that the proceeds from the sale would be used primarily to repay a part of its outstanding borrowings under its senior secured revolving credit facility, which is due in 2027. Any remaining funds will be allocated for general corporate purposes.
The notes, which are to be senior unsecured obligations of the company, will also be guaranteed by Insight's existing and future direct and indirect U.S. subsidiaries that are guarantors or borrowers under its Asset-Based Lending (ABL) facility, with certain exceptions.
Insight Enterprises specified that the offering of the notes will be conducted in a private transaction exempt from registration under the Securities Act of 1933. The sale will be directed to qualified institutional buyers under Rule 144A and to non-U.S. persons in offshore transactions under Regulation S.
The company has clarified that this press release does not constitute an offer to sell or a solicitation to buy any securities, including the notes. Moreover, the notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold within the United States without registration or an applicable exemption from registration requirements.
The press release includes forward-looking statements which are subject to various risks and uncertainties that could cause actual results to differ materially from those projected. Insight Enterprises has indicated that these risks are detailed in their filings with the Securities and Exchange Commission, including the risk factors in their most recent periodic reports on Form 10-K and Form 10-Q.
This announcement is based on a press release statement from Insight Enterprises Inc. and contains no promotional material but is intended to inform stakeholders and the public about the company's financial activities.
InvestingPro Insights
In light of Insight Enterprises Inc.'s (NASDAQ: NSIT) recent announcement regarding its $500 million senior notes offering, it's worth noting the company's current financial health as reflected by InvestingPro's real-time data.
With a market capitalization of $6.68 billion and a price-to-earnings (P/E) ratio of 22.42, Insight Enterprises stands out as a significant player in the technology sector. The adjusted P/E ratio for the last twelve months as of Q1 2024 is slightly lower at 21.67, suggesting a slight improvement in earnings relative to the company's share price.
InvestingPro Tips highlight that analysts have recently revised their earnings upwards for Insight Enterprises, indicating potential confidence in the company's performance in the upcoming period.
Moreover, the company's valuation implies a strong free cash flow yield, which could be appealing to investors looking for companies with the ability to generate cash. Moreover, Insight Enterprises has been trading near its 52-week high, with a price 98.91% of the high, reflecting a strong market sentiment.
For investors seeking a deeper analysis, InvestingPro offers more tips on Insight Enterprises, including insights into the company's profitability this year and its performance over various time frames. Interested readers can find additional InvestingPro Tips at https://www.investing.com/pro/NSIT. To enhance your investment research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, where you can access a total of 16 InvestingPro Tips for Insight Enterprises Inc.
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