Willis Towers Watson Affiliate Prices $1 Billion Senior Notes

Trinity Acquisition plc (“Trinity”), an indirect wholly-owned subsidiary of Willis Towers Watson Public Limited Company WLTW, has made a registered offering of two series of senior unsecured notes aggregating $1 billion. The offering consists of 3.500% $450 million senior notes and 4.400% $550 million senior notes, scheduled to mature on Sep 15, 2021 and Mar 15 2026, respectively.

Willis Towers Watson, along with its certain direct and indirect subsidiaries, will fully and unconditionally guarantee the principal and interest payments on these notes.

Trinity plans to deploy the net proceeds from the offering to repay debts under Willis Tower Watson’s revolving credit facility and bridge loan facility.

This issuing of senior notes amid a low interest rate environment is a prudent way to procure funds. Capitalizing on the low interest rate environment helps companies manage their interest burden efficiently, thereby facilitating margin expansion.

Notably, as of Dec 31, 2015, Willis Tower Watson’s total debt was $3.3 billion compared with $2.3 billion at the end of 2014. This reflects an increase of 42.2%. The debt-to-equity ratio at year-end 2015 was 147%, up from 115% at the end 2014.

Shares of Willis Towers Watson dipped 2.2% in Friday’s trading session.

Zacks Rank and Stocks to Consider

Some better-ranked stocks from the same space are Blue Capital Reinsurance Holdings Ltd. BCRH, Hanover Ruck SE HVRRY and Chubb Limited CB. Each of these stocks holds a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
HANNOVER RUECKV (HVRRY): Free Stock Analysis Report
 
CHUBB LTD (CB): Free Stock Analysis Report
 
BLUE CAP REINSR (BCRH): Free Stock Analysis Report
 
WILLIS TWRS WAT (WLTW): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Comments on HVRRY stock