Source: investing, 18/11/2024, Monday
Minneapolis – Deluxe Inc. (NYSE: DLX), a payments and trusted data specialist, has announced its intention to issue a $400 million secured bond maturing in 2029. This private placement targets institutional investors qualified under Section 144A of the Securities Act of 1933 and non-U.S. persons under Regulation S of the same Act.
as well as cover transaction fees and expenses. Deluxe’s plans include reworking and amending the existing credit agreement to create a new secured credit facility.
consisting of a $400 million revolving credit facility and a loan facility. $500 million term A.
The offering is based on the successful closing to amend and rework the said credit facility. It is important to note that bonds, along with related guarantees, are not registered under the Securities Act or any state securities laws. Consequently, it cannot be offered or sold within the United States without registration or an applicable exemption from these requirements.
With a history spanning more than a century, Deluxe supports businesses with payment and data solutions.
facilitating an annual payment volume of more than $2 trillion. The company serves a variety of clients, including small businesses, large financial institutions and large consumer brands.
This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy bonds or any other securities. There will be no sale of bonds in any jurisdiction where such offer.
solicitation or sale would be illegal prior to registration or qualification under the securities laws of that jurisdiction.
The information in this article is based on a press release and does not include any speculative or forward-looking statements about Deluxe’s future performance.
In other recent news, Deluxe announced its financial results for the third quarter of 2024.
providing insights into the company’s financial performance and strategic outlook for the future. The earnings call was hosted by Vice President of Strategy and Investor Relations Brian Anderson.
and attended by President and CEO Barry McCarthy and Chief
Financial Officer Chip Zenit, where they discussed financial metrics that are not GAAP compliant and forward-looking statements. The management team expressed confidence in the company’s strategy and future performance metrics.
but acknowledged that actual results may vary due to certain factors.
These factors, which may cause results to differ from expectations, appear in the Deluxe filings with the Securities and Exchange Commission and the recent press release. The Q&A session that followed the prepared observations did not discuss any specific financial failures. These developments are part of the company’s recent activities and indicate its commitment to transparency and strategic planning.
As Deluxe (NYSE:DLX) proceeds with its $400 million bond offering.
investors may find value in the added context of up-to-date financial data and expert insights. According to Investing Pro, Deluxe has a market capitalization of $1.03 billion.
reflecting its significant presence in the payments and data solutions sector.
The company’s financial health appears to be strong.
with Investing Pro data showing a gross profit margin of 54.1% for the past twelve months through the third quarter of 2024. This impressive figure aligns with one of Investing Pro’s tips, which highlights Deluxe’s “impressive gross profit margins.” These strong margins may provide the company with financial flexibility as it undertakes this new debt offering and re-initiative Funding.
In addition, Deluxe’s dividend policy stands out. The company offers a dividend yield of 5.17%, which is important in the current market environment. This is complemented by advice from Investing Pro noting that Deluxe “has maintained dividend payments for 54 consecutive years,” underscoring its commitment to shareholder returns even while managing its debt structure.
For investors looking at Deluxe’s long-term prospects, it’s worth noting that the company’s (adjusted) price-to-profitability ratio is 12.37 for the past twelve months to the third quarter of 2024. This relatively moderate valuation may be attractive.
especially given another advice from Investing Pro that Deluxe “trades a low P/E ratio relative to near-term earnings growth.”
These insights offer a broader perspective on Deluxe’s financial situation as it makes this big refinancing step. Investors interested in a more comprehensive analysis can access additional tips and data through Investing Pro, which offers 11 additional tips for Deluxe.
