Today, Haleon plc (LSE/NYSE: HLN), a leading global consumer health company, announced the successful pricing of a dual-tranche bond offering on Wednesday through its subsidiary, Haleon UK Capital plc. The bond issuance is part of the company's Euro Medium Term Note (EMTN) programme and is scheduled to close on September 18, 2024, with customary closing conditions.
The offering includes €750 million of fixed-rate notes with a 2.875% coupon, due in 2028, and £300 million of fixed-rate notes with a 4.625% coupon, maturing in 2033. These notes are guaranteed by Haleon plc and will be admitted for trading on the London Stock Exchange's International Securities Market.
Haleon intends to use the net proceeds for general corporate purposes, which include the partial repayment of a $1.75 billion bond set to mature in March 2025. The transaction was managed by Barclays, Bank of America, BNP Paribas (OTC:BNPQY), and JP Morgan as joint book-running managers.
In other recent news, Haleon PLC has seen a series of significant developments. BofA Securities has adjusted its outlook on Haleon, maintaining a Buy rating and increasing the price target from £4.00 to £4.40. The firm's analysis suggests that Haleon is well-positioned for growth, forecasting a compound annual growth rate of 5.3% from 2023 to 2026 and a robust earnings per share growth of approximately 7.6%.
Haleon also recently published a supplement to its Euro Medium Term Note Programme, providing updated information relevant for investors. The company continues its commitment to transparency in financial activities.
On the product front, Haleon has launched Eroxon®, the first FDA-cleared over-the-counter gel for the treatment of erectile dysfunction in the United States. The product is expected to be available at major retailers in October 2024.
In terms of corporate structure, Haleon has announced the appointment of two new board members, Alan Stewart and Nancy Avila, who bring extensive experience in corporate finance, business transformation, and digital strategy. The company also disclosed its total number of shares with voting rights, standing at 9,123,638,944, each with a nominal value of £0.01.
Finally, Haleon has been subject to various analyst ratings. Goldman Sachs downgraded the company's stock from "Buy" to "Neutral," citing overvaluation, while Berenberg initiated coverage with a "Buy" rating, anticipating organic sales growth.
InvestingPro Insights
As Haleon plc navigates its financial strategy with the recent bond offering, real-time data from InvestingPro provides a snapshot of the company's financial health. With an impressive market capitalization of $46.87 billion and a solid gross profit margin of 62.54% over the last twelve months as of Q2 2024, Haleon demonstrates a strong position in the consumer health market. This profitability is further underscored by a notable 26.02% return over the last three months, indicating a positive trend in investor sentiment.
InvestingPro Tips highlight that Haleon is trading near its 52-week high, with the price at 99.24% of this peak, reflecting strong market confidence. Additionally, analysts predict the company will be profitable this year, which aligns with the company's performance over the last twelve months. It's worth noting that while the stock generally trades with low price volatility, the Relative Strength Index (RSI) suggests it is currently in overbought territory. Investors looking for more insights can find additional tips on InvestingPro, including an analysis of Haleon's debt levels and short-term obligations.
For those interested in a deeper dive into Haleon's financial metrics and for further InvestingPro Tips, you can visit https://www.investing.com/pro/HLN.
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