LINCOLNSHIRE, Ill. - Zebra Technologies Corporation (NASDAQ: ZBRA), a global enterprise asset intelligence company, announced its intention to issue up to $500 million in senior unsecured notes due 2032. The private offering is subject to market conditions and other factors.
The company aims to allocate the net proceeds from the sale of these notes to repay its existing $172 million debt under its revolving credit facility, a figure reported as of March 30, 2024. The remaining funds are intended for general corporate purposes, including replenishing cash following the repayment of its receivables financing facility that matured on May 13, 2024.
These senior unsecured obligations will be guaranteed by certain domestic subsidiaries of Zebra Technologies. However, the notes and their guarantees will not be registered under the Securities Act of 1933, as amended, nor under the securities laws of any other jurisdiction. They will be offered exclusively to qualified institutional buyers according to Rule 144A and to non-U.S. persons under Regulation S of the Securities Act.
This article is based on a press release statement from Zebra Technologies Corporation.
InvestingPro Insights
As Zebra Technologies Corporation (NASDAQ: ZBRA) navigates through its strategic financial moves, the latest data from InvestingPro provides a snapshot of the company's current market standing. Zebra's market capitalization stands at approximately $16.35 billion, reflecting its position in the industry.
InvestingPro Tips reveal that Zebra is trading at a high earnings multiple, with a P/E ratio of 46.25 based on the last twelve months as of Q1 2024. This indicates that investors are willing to pay a premium for the company's earnings potential. Moreover, Zebra has experienced a strong return over the last three months, with a 16.9% price total return, which could be indicative of market confidence in the company's growth trajectory.
Investors should note that Zebra's stock price is near its 52-week high, trading at 97.78% of this peak value. This could suggest that the stock is currently favored by the market, especially in light of the 11 analysts who have revised their earnings upwards for the upcoming period, as per InvestingPro Tips.
It's important to consider that Zebra does not pay dividends, which might influence investment decisions for those seeking regular income from their holdings. However, with a significant price uptick over the last six months of 44.14%, Zebra's growth potential may be attractive for investors focused on capital gains.
For those interested in delving deeper into Zebra Technologies' financial health and future prospects, InvestingPro offers additional insights. There are over 13 more InvestingPro Tips available for Zebra, which can be accessed at https://www.investing.com/pro/ZBRA. To gain comprehensive access to these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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