Join        Login             Stock Quote

SPX Corp. (SPW) Cuts Debt During Q4, Closes Share Repurchase Plan

 January 09, 2013 09:29 AM

(By Balaseshan) SPX Corp. (NYSE: SPW), a maker of flow technology products, said it has cut its total debt by about $450 million during the fourth quarter and it closed the $350 million share repurchase plan it entered into in early 2012.

These actions are consistent with the previously communicated capital allocation plans for the use of about $1.15 billion of proceeds from the sale of Service Solutions which was completed on December 3, 2012.

After receiving the proceeds from the sale of Service Solutions, SPX reduced its total debt. This included the repayment of its $300 million Term Loan X and a $25 million partial repayment of its Term Loan A.

[Related -Dividend Roundup: BNS, CRY, CVI, SPW, TUC, OXLC]

SPX ended 2012 with about $1.7 billion of total debt and $700 million of net debt. The company now has no significant debt repayment obligations until Q4-2014.

In the first quarter of 2012, SPX entered into a 10b5-1 share repurchase plan to facilitate the repurchase of $350 million of its stock. Phase 1 of this share repurchase plan was completed in Q2-2012 and totaled $75 million or 1 million shares.

Shortly after receiving the proceeds from the sale of Service Solutions, Phase 2 of the company's 10b5-1 share repurchase plan began trading. Under Phase 2, SPX completed repurchases of $275 million or 4.1 million shares. In total, the company repurchased 5.1 million shares under this plan or about 10% of its shares outstanding.

SPW closed Tuesday's regular session at $69.44. The stock has been trading between $56.31 and $79.42 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

article imageMarket Potentially Facing Near Term Technical Headwinds

After the S&P 500 Index pullback on Thursday and Friday last week, the market's advance on Monday and read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.