Marsh & McLennan Issues $500M Notes - Analyst Blog
27 9월 2013 - 7:55AM
Zacks
Marsh & McLennan Cos. Inc. (MMC) announced
the pricing of senior unsecured notes worth $500 million in a
two-part offering. The proceeds are expected to be utilized for
enhancing business operations as well as to redeem $250 million of
long-term notes that are due for maturity in 2015.
Accordingly, one part of the long-term notes are worth $250
million and are dated to mature in 2018. These five-year fixed rate
notes bear an interest of 2.55%. The remaining tranche of $250
million notes are slated to mature in 2023. These ten-year fixed
rate senior notes carry an interest of 4.05%.
Marsh & McLennan appointed BofA Merrill Lynch of
Bank of America Corp. (BAC), Deutsche Bank
Securities of Deutsche Bank AG (DB), Goldman,
Sachs & Co. of Goldman Sachs Group Inc. (GS)
and HSBC Holdings plc (HBC) as joint book-running
managers for the offering. The company also appointed co-managers,
which include Barclays Capital plc (BCS),
JP Morgan Chase & Co. (JPM), Citigroup
Inc. (C) and Morgan Stanley (MS).
Ratings Action
Meanwhile, Moody’s Investor Service of Moody’s
Corp. (MCO) have casted a rating of “Baa2” to both the set
of notes, with a positive outlook. Additionally, the ratings agency
affirmed its ratings of “Baa2” and “P-2” rating on Marsh &
McLennan’s unsecured long-term debt and short-term debt,
respectively.
While the ongoing slow pace of growth in the financials of Marsh
& McLennan Given the low interest rate environment and
sluggishness across the U.S. and European economies, growth in the
financials of Marsh & McLennan continues to be slow.
Nevertheless, Moody’s appreciate the company’s financial
flexibility. The optimism also derives from Marsh & McLennan’s
healthy and diverse business model and its strong global presence
in over 100 countries.
Meanwhile, the latest notes issue to refinance existing notes
will not have any material effect on the credit profile, thereby
maintaining its debt-to-EBITDA ratio between 2.5x and 3.0x. Along
with a healthy financial leverage, balance sheet and coverage
ratios, a net profit margin of about 12% and adjusted operating
margin of 19.4%, in the first half of 2013, the company showcases
modest financial improvement, thereby paving the way for enhancing
operating leverage.
While Marsh & McLennan carries a Zacks Rank #3 (Hold),
Moody’s carries a Zacks Rank #2 (Buy).
BANK OF AMER CP (BAC): Free Stock Analysis Report
BARCLAY PLC-ADR (BCS): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
DEUTSCHE BK AG (DB): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
HSBC HOLDINGS (HBC): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
MOODYS CORP (MCO): Free Stock Analysis Report
MARSH &MCLENNAN (MMC): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
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