CHANDLER, Ariz. - Insight Enterprises, Inc. (NASDAQ:NSIT), a provider of information technology solutions, has priced an offering of $500 million in senior notes at 6.625% due in 2032. The company announced that the proceeds will be allocated primarily to repaying part of its outstanding borrowings under its senior secured revolving credit facility, which is due in 2027. The remaining funds, if any, are intended for general corporate purposes.
The sale of these notes is anticipated to be finalized on May 20, 2024, pending the satisfaction of customary closing conditions. These senior unsecured obligations will be guaranteed by Insight Enterprises' current and future U.S. subsidiaries that are guarantors or borrowers under its asset-based lending (ABL) facility, with certain exceptions.
Interest on the notes will be paid semiannually in arrears on May 15 and November 15, starting from November 15, 2024, and the notes will mature on May 15, 2032. The offering is directed at qualified institutional buyers according to Rule 144A under the Securities Act of 1933 and to non-U.S. persons outside the United States under Regulation S.
Insight Enterprises has clarified that the notes will not be registered under the Securities Act or state securities laws and cannot be offered or sold in the U.S. without registration or an exemption from these requirements.
InvestingPro Insights
Insight Enterprises (NASDAQ:NSIT) has shown a robust financial performance with a market capitalization of $6.85 billion. The company's P/E ratio stands at 22.81, reflecting investor confidence in its future earnings potential. According to the latest data, Insight Enterprises has generated a revenue of $9.23 billion over the last twelve months as of Q1 2024, although experiencing a slight decline in revenue growth by -8.64% during the same period.
InvestingPro Tips highlight that analysts have recently revised their earnings upwards for Insight Enterprises, indicating a positive outlook for the company's upcoming financial period. Moreover, the company's valuation implies a strong free cash flow yield, suggesting that the company is generating a healthy amount of cash relative to its share price. These insights could be particularly relevant for investors considering the company's recent senior notes offering and its strategy for debt management.
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