Genon ADJUSTS FY12 and 3 Heavily Traded Shares to Watch
Genon Energy Inc (NYSE:GEN): In comments made on NRG Energy’s conference call discussing its merger with GenOn, it states that it sees no regulatory obstacles to closing its deal in 1Q13. The company also states that it sees one-time costs totaling $155 million in order to achieve the merger. GenOn reports a FY12 adjusted EBITDA of $476 million, a FY13 adjusted EBITDA of $687 million, FY14 adjusted EBITDA of $730 million. NRG sees a decreasing debt of the combined business by $1 billion.
Nexen Inc. (NYSE:NXY) and CNOOC Ltd (NYSE:CEO) have announced that they have entered into a definitive agreement under which CNOOC Ltd will acquire all Nexen outstanding common shares for $27.50 per share in cash. The purchase price represents a 61 percent premium to Nexen’s common shares as of July 20, and a 66 percent premium to Nexen’s 20 trading-day volume-weighted average share price. The total cash consideration is approximately $15.1 billion for the common and preferred shares of Nexen, and Nexen’s approximate $4.3 billion current debt will remain outstanding. The transaction, which is to be completed via a plan of arrangement, should close in 2012’s Q4. This acquisition expands CNOOC Ltd’s overseas businesses and resource base in order to provide long-term, sustainable growth. After royalties during Q2 of 2012, Nexen showed an average production of 207 mboe/d. The transaction will be funded by the existing cash resources and external financing of CNOOC Limited.
Bank of America Corp (NYSE:BAC): As investors turn to stocks of big, dividend paying companies, especially those perceived as less vulnerable to a slowing economy or European turmoil, defense has become the new offense in the stock market, according to the Wall Street Journal. However, this popularity has propelled these “defensive” stocks to their most expensive in years, which causes questions regarding whether or not they have run too far.
General Electric Company (NYSE:GE): GE Capital, Healthcare Financial Services announced that it was administrative agent on a $60 million senior secured revolving credit facility for Diplomat Pharmacy, Inc. The proceeds will assist in the refinancing of the company’s current credit facility as well as being used for general corporate purposes. GE Markets was the only lead arranger and only book runner on the facility.
Microsoft Corporation (NASDAQ:MSFT): Nokia (NYSE:NOK) has begun negotiations with European operators regarding the formation of exclusive partnerships for the launch of a smartphone using the Windows 8 platform from Microsoft (NASDAQ:MSFT), according to Financial Times. The relationships would provide the operator with a financial stake in the success of the range, states a source.
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