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PITTSBURGH - Wabtec Corporation (NYSE: WAB), a global provider of equipment and services for the rail industry with a market capitalization of $35.45 billion, has announced the pricing of its public offering of senior notes. The company’s stock is currently trading near its 52-week high at $207.16. According to InvestingPro analysis, Wabtec appears to be trading above its Fair Value, with strong financial health metrics and robust growth potential. The company is offering $500 million of 4.900% senior notes due in 2030 and $750 million of 5.500% senior notes due in 2035, both guaranteed by its subsidiaries.
These notes will pay interest semi-annually and are slated to mature on May 29 of their respective years, 2030 and 2035, unless redeemed or repurchased earlier. The offering is expected to close on May 29, 2025, subject to standard closing conditions. InvestingPro data shows that Wabtec operates with a moderate level of debt, maintaining a healthy current ratio of 1.34 and total debt of $4.31 billion.
Proceeds from the sale are intended for general corporate purposes. Specifically, Wabtec plans to use the funds to repay its outstanding 3.200% senior notes due on June 15, 2025, and finance a portion of the purchase price for its pending acquisition of the Inspection Technologies division from Evident Corporation, alongside related fees and expenses.
The offering is being managed by BNP Paribas Securities Corp., BofA Securities, Inc., HSBC Securities (USA) Inc., and J.P. Morgan Securities LLC, who are acting as joint book-running managers.
This news comes from a recent press release and does not serve as an offer to sell or a solicitation to buy the notes. The sale is being made under an automatic shelf registration statement filed with the SEC, and the related prospectus and prospectus supplement are available for review.
Wabtec has a longstanding history in the rail industry and is focused on advancing zero-emission rail systems in the U.S. and globally. With annual revenue of $10.5 billion and strong financial performance, the company continues to demonstrate solid market position. The company’s forward-looking statements in the press release, related to the offering and the use of proceeds, are based on current plans and subject to risks and uncertainties. For deeper insights into Wabtec’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 top US stocks.
In other recent news, Westinghouse Air Brake Technologies Corporation (Wabtec) reported strong first-quarter 2025 earnings, with an adjusted earnings per share (EPS) of $2.28, surpassing analyst expectations of $2.03. The company’s revenue for the quarter reached $2.61 billion, reflecting a 4.5% increase from the previous year. This performance was bolstered by growth in both the Freight and Transit segments and improved operating margins. Additionally, Wabtec has announced the addition of Wabtec US Rail, Inc. as a new guarantor for its debt securities, which is part of the company’s efforts to ensure compliance with its financial obligations.
Wabtec has also declared a regular quarterly dividend of 25 cents per share, payable to shareholders of record as of May 27, 2025. This move aligns with the company’s ongoing practice of delivering shareholder value. Furthermore, Wabtec’s updated financial guidance for 2025 projects adjusted EPS in the range of $8.35 to $8.95, reflecting cautious optimism amid economic uncertainties. The company’s commitment to sustainability continues, with a focus on achieving a zero-emission rail system.
In terms of strategic developments, Wabtec has secured significant international contracts, enhancing its backlog and providing visibility into future revenue streams. The company maintained solid liquidity with $698 million in cash and returned $141 million to shareholders through dividends and share repurchases during the quarter. These recent developments underscore Wabtec’s ability to navigate economic challenges while delivering on its financial commitments.
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