DUBLIN - Perrigo Company plc (NYSE: NYSE:PRGO), a global player in consumer self-care products, has priced a significant offering of senior notes through its finance subsidiary, Perrigo Finance Unlimited Company. The offering includes $715 million of 6.125% Senior Notes and €350 million of 5.375% Senior Notes, both sets due in 2032 and guaranteed by Perrigo and its subsidiaries.
The proceeds from the sale of these notes, which were offered at par, are earmarked for the redemption of the issuer's 4.375% Senior Notes due in 2026 and for the partial prepayment of Term B Loans under Perrigo's credit facilities. The transaction is anticipated to close on September 17, 2024, pending customary closing conditions.
Several financial institutions, including BofA Securities, J.P. Morgan, Wells Fargo Securities, Morgan Stanley, and HSBC, are managing the book-running for the USD Notes. For the Euro Notes, the active joint book-runners are BofA Securities, HSBC, and J.P. Morgan.
This news comes as part of Perrigo's broader financial strategy and follows the company's commitment to self-care products and OTC health solutions. The pricing of the notes was conducted under an effective shelf registration statement with the Securities and Exchange Commission, with prospectus supplements available upon request.
It's important to note that this press release is not an offer to sell or a solicitation of an offer to buy any securities, nor does it constitute a notice of redemption for the 2026 Notes.
The information in this article is based on a press release statement from Perrigo Company plc.
In other recent news, Perrigo Company plc reported mixed second quarter financial results for 2024, with a decline in organic net sales due to challenges in the infant formula regulatory environment. However, the company reaffirmed its commitment to its full-year earnings per share (EPS) outlook and is on track to deliver significant pre-tax annualized gross savings by 2026. Perrigo also announced the appointment of Dr. David Ball (NYSE:BALL) as the Executive Vice President and Chief Brand and Digital Officer, a strategic move aimed at enhancing the company's brand strategies and digital marketing footprint.
In the midst of these developments, Perrigo has updated its net sales growth outlook for 2024, projecting a decrease of -1% to -3%, with an adjusted EPS outlook of $2.50 to $2.65. Despite losing a margin-dilutive customer in the nutritionals segment, the company reported margin expansion, offset by more margin accretive wins in other areas.
Looking forward, Perrigo plans to rebuild its infant formula business, with production volumes nearing previous year levels and a focus on quality control advancements. The company also expressed confidence in the full quality compliance of the nutritional business following remediation work. These are the recent developments for Perrigo Company plc.
InvestingPro Insights
Perrigo Company plc (NYSE: PRGO), known for its commitment to consumer self-care products, has demonstrated a consistent approach to shareholder returns, having raised its dividend for 21 consecutive years. This commitment is further underscored by maintaining dividend payments for 22 consecutive years, which is a testament to the company's financial discipline and investor-friendly policies.
As of the last twelve months leading up to Q2 2024, Perrigo has been grappling with a challenging financial performance, reflected in a revenue decline of 4.36%. Despite this, analysts are optimistic about the company's future, predicting a return to profitability this year, supported by two analysts revising their earnings upwards for the upcoming period. This expected turnaround in net income growth provides a positive outlook for investors considering the company's long-term potential.
InvestingPro Data metrics reveal a mixed financial picture for Perrigo. The company's market capitalization stands at $3.65 billion, with a Price/Earnings (P/E) ratio of -29.18, indicating that the market has factored in some of the recent underperformance. However, the adjusted P/E ratio for the last twelve months is a much higher 60.88, which may suggest a premium valuation given the anticipated recovery in profitability. Additionally, the dividend yield as of the most recent data is an attractive 4.13%, offering a tangible return for investors amidst market volatility.
For investors seeking more detailed analysis and additional insights, InvestingPro offers a range of tips and metrics, including 7 more InvestingPro Tips available for Perrigo at https://www.investing.com/pro/PRGO. These tips could provide a deeper understanding of the company's financial health and market position, helping to inform investment decisions in the context of the company's recent strategic financial activities.
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