Rollins Inc. announces private offering of senior notes

ATLANTA, GA - Rollins Inc . (NYSE:ROL), a leading company in the services to dwellings and other buildings industry with a market capitalization of $24.2 billion, announced today that it has launched a private offering of senior notes, subject to market and other conditions.

According to InvestingPro data, the company operates with moderate debt levels and maintains strong cash flows sufficient to cover interest payments. The offering aims to raise capital through the sale of senior notes, which will be guaranteed by the company’s subsidiaries that are also guarantors under its senior credit agreement.

The proceeds from the sale of these notes are intended primarily for the repayment of debt under Rollins’ senior credit agreement. Additionally, funds may be used for general corporate purposes, which could include dividends, share repurchases, acquisitions, working capital, and capital expenditures.

Notably, InvestingPro analysis shows that Rollins has maintained dividend payments for 55 consecutive years and has raised its dividend for 22 consecutive years, demonstrating strong commitment to shareholder returns.

The offering is being conducted as a private placement, exempt from registration under the Securities Act of 1933, as amended. As such, the notes cannot be offered or sold in the United States without registration or an exemption from the registration requirements of the Securities Act.

Rollins Inc. has indicated that the completion of the offering is subject to various market conditions, and there is no certainty as to the timing or the ability to finalize the offering.

Rollins Inc., traded on the New York Stock Exchange under the ticker (NYSE:ROL), is headquartered in Atlanta, Georgia. The company has not disclosed the amount of the notes being offered or the terms of the securities. Based on InvestingPro analysis, the company currently appears overvalued compared to its Fair Value, with impressive gross profit margins of 52.7% and a strong return on equity of 38%.

Potential investors are cautioned that the transactions are pending and may not be completed as described or at all. For comprehensive analysis and 17 additional ProTips about Rollins, investors can access the detailed Pro Research Report available on InvestingPro.

This news is based on a recent SEC filing by Rollins Inc. and contains forward-looking statements regarding the company’s financial activities.

In other recent news, Rollins, Inc. reported its fourth-quarter 2024 earnings, revealing revenue of $832 million, which surpassed analyst forecasts of $815.99 million. The company achieved an earnings per share (EPS) of $0.23, aligning with market expectations.

Rollins’ full-year revenue grew by 10.3% to $3.4 billion, supported by strong demand across its service offerings. The company also completed 44 acquisition deals, contributing to its expansion strategy. Jefferies recently raised Rollins’ stock price target to $48, maintaining a Hold rating, following the company’s solid quarterly results.

Despite increased sales and marketing expenses, Rollins demonstrated robust organic growth. The firm highlighted the potential for continued growth, citing the productivity of new salespeople and a diversified customer acquisition approach. Rollins’ operating cash flow stood at $688 million, with free cash flow increasing by 15.17%, indicating strong financial health.

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