Crown Holdings (NYSE:CCK), Inc., a leader in metal packaging technology, announced today its intention to issue €600 million in senior unsecured notes through its subsidiary, Crown European Holdings S.A. The notes will be offered in a private placement aimed at qualified institutional buyers, by Rule 144A, and to non-U.S. persons outside the United States under Regulation S.
The company, headquartered in Tampa, Florida, is listed on the New York Stock Exchange under the ticker symbol NYSE:CCK. It also has 7 3/8% Debentures due 2026 and 7 1/2% Debentures due 2096 listed on the same exchange under the symbols NYSE:CCK26 and NYSE:CCK96, respectively.
The proceeds from the note offering, along with cash on hand, are earmarked to repay the company's 2.625% senior notes due in September 2024, including related fees and expenses. The notes being offered have not been registered under the Securities Act of 1933 and, as such, cannot be offered or sold within the United States absent registration or an applicable exemption from registration requirements.
This news article is based on a press release statement.
In other recent news, Crown Holdings, Inc. has announced a stock repurchase program of up to $2 billion by the end of 2027, replacing the previous authorization. The company's second-quarter performance exceeded expectations, with earnings per share rising from $1.31 to $1.45 and net sales reaching $3 billion, driven by a 6% increase in global beverage can volumes.
Analyst firms, including RBC Capital Markets, Truist Securities, Loop Capital, and Citi, have adjusted their price targets for Crown Holdings based on this performance and updated guidance.
RBC Capital anticipates that Crown Holdings will generate significant free cash flow, over $750 million, in fiscal year 2024. This is expected to support the company's debt reduction and share repurchase initiatives. Crown Holdings has also raised its full-year EPS guidance to a range of $6.00 to $6.25, suggesting a year-over-year growth of approximately 4.6%.
Truist Securities increased its price target for Crown Holdings from $88.00 to $95.00 while maintaining a Hold rating. This follows Crown Holdings' report of an operating earnings per share (EPS) of $1.81, surpassing both Truist Securities' forecast and the consensus estimate. Crown Holdings also updated its free cash flow guidance for 2024, expecting it to be around $750 million or higher.
Loop Capital maintained a Buy rating on Crown Holdings and increased the price target to $120. This followed Crown Holdings' announcement of a significant EPS beat and higher-than-expected volumes in North America and Europe for the second quarter of 2024. Citi also increased its price target for Crown Holdings from $94.00 to $100.00, maintaining a Buy rating.
InvestingPro Insights
As Crown Holdings, Inc. (NYSE:CCK) proceeds with its strategic financial maneuver to issue €600 million in senior unsecured notes, insights from InvestingPro reveal a company with a solid dividend track record and positive analyst sentiment. Crown Holdings has consistently raised its dividend for three consecutive years, showcasing a commitment to returning value to shareholders. This, coupled with the fact that 7 analysts have revised their earnings upwards for the upcoming period, suggests confidence in the company's financial health and outlook.
From a valuation standpoint, the company's strong free cash flow yield, as implied by its valuation metrics, speaks to its ability to generate cash efficiently from its operations. Moreover, Crown Holdings' recent performance has been noteworthy, with the stock delivering a strong return over the last month. Investors considering the company's latest debt issuance can also take note of the stock's low price volatility, which could indicate a stable investment environment.
Key InvestingPro Data points to consider include Crown Holdings' market capitalization of 10.36B USD, a P/E ratio of 24.06, and a Price / Book ratio of 4.13 for the last twelve months as of Q2 2024. These data points, along with the company's revenue of 11.75B USD and a dividend yield of 1.15%, help paint a broader picture of the company's financial standing as it undertakes this new financial initiative.
For investors looking to gain deeper insights and additional InvestingPro Tips on Crown Holdings, Inc., visiting https://www.investing.com/pro/CCK will provide a more comprehensive analysis. There are 9 additional tips available to help investors make informed decisions. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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