Boston, MA 06\/19\/2014 (wallstreetpr) \u2013\u00a0Acorda Therapeutics Inc (NASDAQ:ACOR)<\/b> is in need of money to fund various programs in the business, which range from acquisitions to capital investments and more. Therefore, the company has announced intent to sell convertible senior notes that could fetch as much as $300 million.<\/p>\n
The company announced it would offer the notes on a date yet to be announced so that it can raise $300 million with the possibility of raising another $45 million in the case of over allotment. The intent to offer debt was filed with the Securities and Exchange Commission (SEC). The debts will mature in 2021. The debt will have annual interest rate of 1.75 percent.<\/p>\n
The company has tapped J.P. Morgan Securities to help with the debt offering as the sole book-running manager. As already mentioned, the money will go into various projects that include possible acquisitions and investment in technologies, products and complementary businesses. As for the acquisitions, the company was quick to point out that it is not engaged or committed to any entity at the moment.<\/p>\n
The move to sell debt in order to raise money saves existing shareholders the impact of stock dilution, and that is good news. Nonetheless, debt can sometimes weigh heavily on the balance sheet, especially where interest rates are high. But that does not seem to be the case with the announced debt whose annual interest rate is expected to be 1.75 percent.<\/p>\n
The fact that Acorda Therapeutics Inc (NASDAQ:ACOR) announced debt offering instead of equity dilution saw shares of the company up almost 8 percent on Wednesday.<\/p>\n
Analysts recommend Hold<\/b><\/p>\n
The stock of Acorda (NASDAQ:ACOR) has an average recommendation of a \u201chold\u201d and average price target of $39.21 from ten research firms covering the stock. The notable sentiments include a \u201cneutral\u201d rating from Zacks, which also has a price target of $32 per share on the stock. Aegis has a \u201cbuy\u201d recommendation on the stock.<\/p>\n
Beating results<\/b><\/p>\n
\u00a0Acorda Therapeutics Inc (NASDAQ:ACOR) had no mercy for the estimated issued by Wall Street on its 1Q2014 performance. The company earned $0.21 per share on revenue of $80.52 million, yet analyst expected $0.09 per share.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/19\/2014 (wallstreetpr) \u2013\u00a0Acorda Therapeutics Inc (NASDAQ:ACOR) is in need of money to fund various programs in the business, which range from acquisitions to […]<\/p>\n","protected":false},"author":3,"featured_media":26465,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[264],"tags":[7466,7467],"stock_ticker":[],"class_list":["post-26463","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-acorda-therapeutics-inc-nasdaqacor","tag-nasdaqacor","entry"],"acf":[],"yoast_head":"\n