SANTA ROSA, Calif. - Keysight Technologies , Inc. (NYSE: NYSE:KEYS), a provider of electronic design and test solutions, announced today the pricing of a $600 million senior unsecured fixed-rate note offering. The notes, due in 2034, will carry an annual interest rate of 4.950 percent, with the offering expected to close on October 9, 2024, subject to customary closing conditions.
The company has stated that the net proceeds from the offering will be used for general corporate purposes. This includes the repayment of its outstanding $600 million of 4.55% senior notes that are due on October 30, 2024.
BNP Paribas (OTC:BNPQY) Securities Corp., Citigroup Global Markets Inc., and BofA Securities, Inc. are serving as joint lead book-running managers for the offering. Barclays Capital Inc. and J.P. Morgan Securities LLC are also participating as book-running managers.
This offering is made under an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC). Interested parties can obtain copies of the prospectus supplement for the offering and the accompanying base shelf prospectus by contacting the book-running managers.
The press release from Keysight Technologies emphasizes that this announcement is not an offer to sell or a solicitation of an offer to buy the securities. Moreover, no sales will be made in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
Keysight Technologies plays a significant role in aiding innovators in various industries such as communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics. The company focuses on providing solutions that enable the development and deployment of technologies with speed and reduced risk.
The information for this article is based on a press release statement from Keysight Technologies.
In other recent news, Keysight Technologies reported strong Q3 performance with revenues of $1.2 billion and earnings per share (EPS) of $1.57, exceeding expectations. The company also unveiled its N7718C Optical Reference Transmitter, a significant innovation for testing advanced optical receivers, and the InfiniiVision HD3 Series oscilloscope, designed to detect and address signal issues. Keysight has also expressed intentions to expand its serviceable available market and pursue mergers and acquisitions.
Analysts from Deutsche Bank, Baird, and Goldman Sachs have shown confidence in Keysight's future performance. Deutsche Bank raised its price target for Keysight from $163 to $175, maintaining a Buy rating, while Baird also increased its price target from $160 to $163. Goldman Sachs maintained its Buy rating with a steady price target of $181.
These recent developments underscore Keysight's strategic positioning in the competitive technology market and its commitment to innovation and investor value. The company is set to present a series of advanced solutions aimed at propelling next-generation artificial intelligence (AI) infrastructure at the European Conference on Optical Communication (ECOC), showcasing a variety of optical test innovations.
InvestingPro Insights
As Keysight Technologies (NYSE: KEYS) moves forward with its $600 million senior unsecured note offering, it's worth examining some key financial metrics and insights provided by InvestingPro.
According to InvestingPro data, Keysight's market capitalization stands at $27.07 billion, reflecting its significant presence in the electronic design and test solutions market. The company's P/E ratio of 29.99 suggests that investors are willing to pay a premium for its earnings, possibly due to its strong market position and growth prospects.
An InvestingPro Tip indicates that Keysight operates with a moderate level of debt, which aligns with the company's current move to refinance its existing notes. This prudent debt management strategy could contribute to the company's financial stability and flexibility.
Another relevant InvestingPro Tip reveals that Keysight's liquid assets exceed its short-term obligations. This strong liquidity position supports the company's ability to manage its debt effectively, including the upcoming repayment of the $600 million in senior notes due in October 2024.
It's noteworthy that Keysight has demonstrated profitability over the last twelve months, with a revenue of $5,003 million and an EBITDA of $1,187 million. However, the company has experienced a revenue decline of 10.6% in the same period, which investors should monitor.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights on Keysight Technologies. In fact, there are 8 more InvestingPro Tips available for KEYS, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.