NetApp sets pricing for $1.25 billion senior notes

Published 13/03/2025, 03:30
NetApp sets pricing for $1.25 billion senior notes

SAN JOSE, Calif. - NetApp (NASDAQ: NTAP), a company specializing in intelligent data infrastructure with a market capitalization of $18.6 billion, has announced the pricing of two sets of senior notes totaling $1.25 billion. The notes are divided equally between 5.50% Senior Notes due 2032 and 5.70% Senior Notes due 2035. The transaction is anticipated to be finalized on March 17, 2025, subject to customary closing conditions. According to InvestingPro data, NetApp operates with a moderate level of debt and maintains a strong financial health score.

The company plans to allocate a portion of the net proceeds to repay its $750 million of 1.875% Senior Notes due in 2025 upon maturity. The remaining funds will be directed towards general corporate purposes. With annual revenue of $6.5 billion and a healthy dividend yield of 2.27%, NetApp has maintained dividend payments for 13 consecutive years.

The joint book-running managers for this offering include prominent financial institutions such as Goldman Sachs & Co. LLC, J.P. Morgan, BofA Securities, Wells Fargo Securities, Citigroup, and MUFG.

This press release does not represent an offer to sell the senior notes or any other securities. The sale of these securities will not be lawful in any state or jurisdiction where prior registration or qualification under the applicable securities laws is required. The offering is made only through a preliminary prospectus supplement and accompanying prospectus.

NetApp’s press release includes forward-looking statements, which are subject to various risks and uncertainties. These risks could cause actual results to differ significantly from those projected. The company has disclaimed any obligation to update the information in the press release unless required by law.

The company is recognized for its unified data storage, integrated data services, and CloudOps solutions. NetApp’s offerings are designed to help customers navigate disruptions by creating silo-free infrastructure, utilizing observability and AI for optimal data management, and providing enterprise-grade storage services natively embedded in major cloud platforms. Currently trading near its 52-week low, InvestingPro analysis suggests NetApp is undervalued, with 14 additional exclusive insights available to subscribers through the comprehensive Pro Research Report.

This news article is based on a press release statement from NetApp.

In other recent news, NetApp Inc. reported its third-quarter fiscal year 2025 earnings, revealing mixed results with a slight earnings per share (EPS) beat of $1.91 against the forecast of $1.90, but a revenue miss at $1.64 billion compared to the expected $1.69 billion. This revenue shortfall was influenced by delayed deals and unfavorable foreign exchange rates, notably impacting the international public sector. Despite these challenges, NetApp’s public cloud revenue increased by 15% year-over-year, and its storage-as-a-service platform, Keystone, demonstrated significant growth of nearly 60% year-over-year. Analysts from Loop Capital and Citi have adjusted their price targets for NetApp, with Loop Capital reducing it to $130 while maintaining a Buy rating, and Citi lowering it to $110 with a Neutral rating, citing revenue shortfalls and execution challenges as key factors. The company’s guidance for the upcoming period fell short of expectations due to anticipated continued foreign exchange issues and the divestiture of its Spot business. However, NetApp’s all-flash storage solutions saw a 10% year-over-year increase, and the company secured over 100 wins in AI infrastructure and data lake modernization. NetApp is focusing on improving sales execution and implementing cost controls to enhance deal closures and ensure more predictable revenue streams in the future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.