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ELKHART, Ind. - LCI Industries (market capitalization: $2.45 billion), a supplier of components to the recreation and transportation markets with strong liquidity metrics including a healthy current ratio of 2.82, announced plans for a private placement offering of $400 million in convertible senior notes due 2030. According to InvestingPro analysis, the company maintains solid financial health with liquid assets exceeding short-term obligations. The offering is aimed at qualified institutional buyers as per Rule 144A under the Securities Act of 1933. The company also intends to grant an option for the purchase of an additional $60 million in notes within a 13-day period from the issue date.
The notes, set to mature on March 1, 2030, will be senior unsecured obligations of LCI Industries, with interest paid semi-annually. Conversion of the notes can occur under certain conditions and during specific periods before November 1, 2029. The company’s stock is currently trading near its 52-week low of $95.09, with InvestingPro data suggesting the shares are slightly undervalued based on their proprietary Fair Value model. From then until the second trading day before maturity, conversions can be made at any time. Upon conversion, the company may pay cash, deliver shares of its common stock, or a combination thereof.
LCI Industries plans to use the net proceeds from the offering, along with existing cash, to repurchase a portion of its 1.125% convertible senior notes due 2026 and up to $50 million of its common stock. The repurchase is expected to occur concurrently with the offering’s pricing.
In addition, the company is negotiating repurchases of its 2026 notes and may unwind a portion of its existing convertible note hedge transactions and warrant transactions, which could affect the market price of its common stock and the trading price of the notes.
Concurrently with the notes offering, LCI Industries is proposing a senior secured Term Loan B due 2032 for $400 million and a $600 million revolving credit facility maturing in 2030. The proceeds from the new term loan will be used to prepay existing indebtedness and cover related fees and expenses.
The company also provided cautionary statements regarding forward-looking information, emphasizing that there can be no assurance that the proposed transactions will be completed as planned.
This news is based on a press release statement from LCI Industries. For investors seeking deeper insights into LCI Industries’ debt structure and financial health metrics, InvestingPro offers comprehensive analysis through their Pro Research Report, available as part of their coverage of 1,400+ US equities. The platform provides additional valuable metrics and eight more exclusive ProTips about the company’s financial position and growth prospects.
In other recent news, LCI Industries reported its financial results for the fourth quarter, as detailed in a recent SEC filing. The Elkhart, Indiana-based company shared insights from its earnings conference call, highlighting its financial performance and operational strategies. This information was included in a Form 8-K, which is a standard method for companies to disclose significant events and financial results. The earnings call transcript, available as an exhibit in the filing, offers investors a comprehensive view of LCI Industries’ financial health and strategic initiatives. The company’s commitment to transparency is evident in the detailed disclosure, authorized by Chief Financial Officer Lillian D. Etzkorn. Analysts and investors often analyze these filings to assess the company’s market position and performance within the motor vehicle parts and accessories sector. The recent developments underscore LCI Industries’ adherence to regulatory compliance and fair access to material information for all investors.
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