Valmont Industries, Inc. VMIhas announced the sale of $55 million principal amount of its 5.25% senior notes due Oct 1, 2054 and $200 million principal amount of 5% senior notes due Oct 1, 2044. Subject to customary closing conditions, the offering is expected to close on Jun 19, 2018.
The company plans to use the net proceeds for general corporate purposes, which include financing the redemption of a part or all of its $250.
Notably, Valmont ended first-quarter 2018 with cash balance of $479.7 million, up roughly 12.8% year over year. Long-term debt at the end of the quarter was $753.6 million, down around 0.1% from the year-ago quarter.
The company raised its adjusted earnings per share guidance to a range of roughly $8.00-$8.10 per share that includes $10 million of restructuring charges.
For 2018, Valmont sees signs of stronger economic growth in many regions, which is expected to contribute to favorable sales across most of its businesses. Although weakness in the U.S. farm economy continues to prevail and the uncertainty surrounding tariffs affects customer demand, the company’s diversified base will help mitigate these impacts.
The stock has gained 4.2% over the past three months, outperforming the industry’s 2.2% rise.