Pitney Bowes pays down $75 million in debt

STAMFORD, CT – Today, Pitney Bowes Inc . (NYSE:PBI), a global technology company with a market capitalization of $1.3 billion, announced the repayment of an additional $75 million of its senior secured notes.

The notes, originally issued by Oaktree Capital Management, L.P., had a balance of $172.25 million before this transaction. This repayment is a continuation of the company's strategy to reduce its total debt load of $2.26 billion, following a $100 million repayment made on November 19, 2024. According to InvestingPro data, the company's current ratio stands at 0.88, indicating the importance of debt management.

The company's initiative to deleverage its balance sheet is part of a broader strategic plan, which has been previously disclosed to the public. The repayment was made using the company's available cash reserves. Pitney Bowes also indicated that further information about its plans to retire the remaining Oaktree 2028 Notes would be forthcoming.

The announcement was made in line with regulatory requirements, as stipulated by a Form 8-K filing with the United States Securities and Exchange Commission. This filing ensures that shareholders and the public are kept informed about significant financial activities of the company.

Pitney Bowes, headquartered in Stamford, Connecticut, is known for its products and services in the mailing industry and has been expanding its presence in the global e-commerce, shipping, and financial services markets.

The company's commitment to reducing its debt load is seen as a positive step towards strengthening its financial position. The stock has shown strong momentum, gaining over 68% year-to-date, and InvestingPro analysis indicates that net income is expected to grow this year, with analysts forecasting a return to profitability.

Investors and market watchers will be looking out for the company's upcoming updates on its debt reduction plan, as indicated by the company's statement in the press release. For deeper insights into Pitney Bowes' financial health and future prospects, including 10+ additional ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, Pitney Bowes Inc. has reached an agreement in principle with DRF Logistics LLC, marking a significant stride towards DRF's exit from bankruptcy. This development is anticipated to be concluded by the end of 2024.

The agreement, which is still subject to final discussions, is expected to be part of a revised chapter 11 plan for DRF. The company is confident this will lead to a favorable resolution of DRF's bankruptcy proceedings.

On the financial front, Pitney Bowes reported a slight decrease in third-quarter revenue, down to $499 million from $503 million year-over-year. Despite this, the company has demonstrated increased profitability with adjusted EBITDA rising 22% to $103 million and adjusted EPS growing to $0.21, up from $0.16. These improvements are attributed to strategic initiatives to reduce costs and optimize cash flow.

In terms of future expectations, the company's full-year revenue for 2024 is projected to decline at a low-single-digit rate, while EBIT guidance has been raised to $355-$360 million. These are the recent developments at Pitney Bowes.

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