Weir Group PLC - Glasgow, Scotland-based engineer - Moody's Investors Service assigns a Baa3 rating to Weir's new USD800 million senior unsecured notes on Friday.
Last week, Weir priced the offering of USD800 million in sustainability-linked notes due May 13, 2026. The firm said the notes will bear interest at a rate of 2.2% per annum, which will be paid semi annually on Thursday and November 13.
"Weir has taken several positive actions in recent months including the application of proceeds from the Oil & Gas division disposal to debt reduction and tightening of its net leverage and dividend policies. In addition, most key end markets benefit from a good market outlook which supports revenue growth and there is some potential for margin improvement in 2021 and thereafter," says Moody's.
Current stock price: 1,937.50 pence
Year-to-date change: down 2.6%
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Weir Group (WEIR)