pentair plc (PNR) Key Developments
Pentair plc and Pentair Finance, S.A. Enters into Restated Credit Agreement
Oct 9 14
On October 3, 2014, Pentair plc, Pentair Investments Switzerland GmbH and Pentair Finance, S.A. entered into an amended and restated credit agreement among Pentair and PISG, as guarantors, PFSA and Pentair Inc., as borrowers, and the lenders and agents party thereto. The credit agreement amends and restates PFSA's existing revolving credit facility. Pentair and its affiliates intend to use the new revolving credit facility for working capital, capital expenditures and for general corporate purposes. The credit agreement provides for a revolving credit facility with an initial maximum aggregate amount of availability of $2.1 billion. Availability under the revolving credit facility will be reduced by outstanding letters of credit. The revolving credit facility matures on October 3, 2019. Borrowings under the credit agreement generally bear interest at a variable rate equal to LIBOR plus a specified margin based upon PFSA's credit ratings from time to time, or the base rate (which is the administrative agent's prime rate, the federal funds rate plus 0.50%, or the sum of 1% plus one-month LIBOR) plus a specified margin based upon PFSA's credit ratings from time to time. PFSA must also pay a facility fee ranging from 9.0 to 25.0 basis points per annum on the amount of each lender's commitment, and letter of credit fee for each letter of credit issued and outstanding under the credit agreement. The credit agreement contains various restrictions and covenants applicable to Pentair and, with certain exceptions, its subsidiaries. Among other requirements, Pentair may not permit the ratio of its consolidated debt plus synthetic lease obligations to its consolidated net income before interest, taxes, depreciation, amortization, non-cash compensation expense, and up to $25 million of costs and expenses incurred in connection with acquisitions, investments, dispositions and the issuance, incurrence, repayment or refinancing of debt (EBITDA) for the four consecutive fiscal quarters then ended to exceed 3.50 to 1.00 on the last day of each fiscal quarter of Pentair, and the ratio of its EBITDA for the four consecutive fiscal quarters then ended to its consolidated interest expense, including consolidated yield or discount accrued as to outstanding securitization obligations (if any), for the same period to be less than 3.00 to 1.00 as of the end of each fiscal quarter of Pentair. For purposes of the Leverage Ratio, the credit agreement provides for the calculation of EBITDA giving pro forma effect to certain acquisitions, divestitures and liquidations during the period to which such calculation relates. All borrowings under the credit agreement are unsecured. However, Pentair and PISG will unconditionally guarantee PFSA's obligations and the obligations of the affiliate borrowers from time to time arising under the credit agreement. The credit agreement also contains customary events of default. If an event of default under the credit agreement occurs and is continuing, then the administrative agent may declare any outstanding obligations under the credit agreement to be immediately due and payable. In addition, if Pentair or any of its material subsidiaries becomes the subject of voluntary or involuntary proceedings under any bankruptcy, insolvency or similar law, then any outstanding obligations under the credit agreement will automatically become immediately due and payable.
Pentair plc Announces Quarterly Cash Dividend, Payable on November 7, 2014
Oct 9 14
Pentair plc announced that it will pay a regular quarterly cash dividend of $0.30 per share on November 7, 2014 to shareholders of record at the close of business on October 24, 2014.
Pentair plc Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Earnings Guidance for the Third Quarter and Full Year of 2014
Jul 31 14
Pentair Ltd. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, net sales were $1,910.8 million against $1,963.7 million for the same period a year ago. Operating income was $227.7 million against $225.9 million for the same period a year ago. Income before income taxes and non controlling interest was $210.4 million against $208.4 million for the same period a year ago. Net income attributable to pentair ltd. was $161.5 million against $154.1 million for the same period a year ago. Earnings per common share attributable to pentair ltd. diluted were $0.82 against $0.75 for the same period a year ago. Operating income—as adjusted was $282.5 million against $268.4 million for the same period a year ago. Net income attributable to pentair ltd.—as adjusted was $203.5 million against $189.2 million for the same period a year ago. Diluted earnings per common share—as adjusted was $1.04 against $0.92 for the same period a year ago.
For the six months, net sales were $3,636.0 million against $3,738.2 million for the same period a year ago. Operating income was $407.6 million against $300.2 million for the same period a year ago. Income before income taxes and non controlling interest was $367.0 million against $282.6 million for the same period a year ago. Net income attributable to pentair ltd. was $280.1 million against $205.8 million for the same period a year ago. Earnings per common share attributable to pentair ltd. diluted were $1.41 against $0.99 for the same period a year ago. Net cash provided by operating activities was $415.0 million against $386.1 million for the same period a year ago. Capital expenditures were $59.6 million against $88.0 million for the same period a year ago. Free cash flow was $358.1 million against $301.7 million for the same period a year ago.
The company is updating its full year 2014 adjusted EPS to a range of $3.65 - $3.70, which represents an increase of approximately 20% from 2013 adjusted EPS of $3.05. The company anticipates full year 2014 sales of $7.15 billion, or up approximately 2% over 2013 sales. The company expects to generate free cash flow in excess of 110% of net income in 2014. The company expects operating income of $931 million and adjusted operating income of $1,010 million, net income attributable to pentair ltd was $652 million and adjusted net income attributable to pentair ltd of $720 million, Diluted EPS of $3.29 - $3.34.
The company introduced third quarter 2014 adjusted EPS guidance of $0.93 - $0.95, up approximately 15% versus the same quarter last year's adjusted EPS. The company expects third quarter revenue to be approximately $1.76 billion, which would be up approximately 3% compared to third quarter 2013 revenue.
Pentair Mulls Acquisitions
Jul 31 14
Pentair plc (NYSE:PNR) is seeking acquisitions. John Stauch, Executive Vice President and Chief Financial Officer of Pentair said, "Our goal is to create long-term sustainable value and acquisitions continue to be a big part of that, but right now there isn't a plethora of significant acquisitions to go get so short term we've been doing what we feel is a disciplined capital allocation model of choosing between all the options and making sure that we are looking at the one that drives the right long-term value creation."
Pentair plc Presents at Piper Jaffray Global Agriculture & Animal Health Investor Day, Aug-05-2014
Jul 29 14
Pentair plc Presents at Piper Jaffray Global Agriculture & Animal Health Investor Day, Aug-05-2014 .