Vulcan Offers Senior Notes - Analyst Blog
June 06 2011 - 1:11PM
Zacks
Vulcan Materials Company (VMC) announced
pricing of $500 million and $600 million aggregate principal amount
of, respectively, 6.5% senior unsecured notes due 2016 and 7.5%
senior unsecured notes due 2021. The offering is expected to
close on June 14, 2011, subject to customary closing terms and
conditions.
The company expects to realize net proceeds
of approximately $1.08 billion, which will be used to
terminate Vulcan’s existing term loan due 2015, to fund a partial
tender offer for its existing senior notes due 2012 and 2013, to
reduce borrowings under its credit facility and the remaining for
general corporate purposes.
During the first quarter of 2011, Vulcan Materials reported a
net loss of 62 cents per share from continuing operations,
deteriorating sharply from last year’s net loss of 53 cents per
share from continuing operations. Total revenue dropped
marginally to $487.2 million from $493.3 million in the
corresponding quarter of 2010.
The year-over-year decline was primarily attributable to a fall
in shipments in South Carolina, Florida and regions along the Gulf
Coast, despite a stronger demand from public infrastructure
projects in Tennessee, Virginia and Georgia.
Vulcan Materials’ cash and cash equivalents improved to $63.2
million as of March 31, 2011 from $36 million at the end of the
prior-year period. However, long-term debt rose to $2.43 billion as
of the above date from $2.10 billion a year ago.
Based in Birmingham, Alabama, Vulcan Materials Corp. is engaged
in the production, distribution and sale of construction
aggregates, and other construction materials and related services
in the U.S. and Mexico.
It is the nation’s largest producer of construction aggregates
and a leading producer of other construction materials. Its key
competitors include Cemex S.A.B. de C.V. (CX),
Lafarge S.A. (LFRGY) and Martin Marietta
Materials Inc. (MLM).
CEMEX SA ADR (CX): Free Stock Analysis Report
LAFARGE SA-ADR (LFRGY): Free Stock Analysis Report
MARTIN MRT-MATL (MLM): Free Stock Analysis Report
VULCAN MATLS CO (VMC): Free Stock Analysis Report
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