In a recent filing with the Securities and Exchange Commission, multiple entities affiliated with Blackstone (NYSE:BX) Inc. disclosed the sale of shares in Loar Holdings Inc. (NASDAQ:LOAR) worth approximately $27.2 million. The transactions, which took place on December 12, 2024, involved the sale of a substantial number of shares at $81.175 each. The stock has experienced a significant 13% decline over the past week, according to InvestingPro data, which also indicates the shares are trading above their Fair Value.
The entities involved in these transactions include GSO Capital Opportunities Fund III LP, Blackstone Private Credit Fund, BCRED Twin Peaks LLC, GSO Barre des Ecrins Master Fund SCSP, and GSO Orchid Fund LP. These entities are collectively referred to as the Blackstone Holders.
Following these sales, the Blackstone Holders continue to retain significant holdings in Loar Holdings. The transactions reflect a strategic reallocation of assets by these Blackstone-affiliated entities, which are significant shareholders in Loar Holdings.
In other recent news, Loar Holdings Inc. has been making significant strides in its financial strategy and growth trajectory. The company reported robust earnings and revenue results, with a 17% increase in organic growth, an adjusted EBITDA of $35 million, and total sales reaching $97 million. Following a successful equity offering, which resulted in approximately $310 million in net proceeds, Loar Holdings also initiated a roadshow for a public offering of 4.75 million shares of common stock. The proceeds are intended for debt repayment and general corporate expenses.
Loar Holdings also completed a strategic acquisition of Applied Avionics for $385 million. This move is expected to increase annual revenues by approximately $40 million and adjusted EBITDA by around $20 million. RBC Capital Markets maintained its Outperform rating on Loar Holdings, increasing the price target to $100 from the previous $80. The firm's analyst cited multiple factors for the positive stance, including the company's unique market position, robust aerospace and defense industry fundamentals, and a potentially favorable environment for mergers and acquisitions.
Other analyst firms, including Jefferies, Citi, and Morgan Stanley (NYSE:MS), initiated coverage on Loar Holdings, expressing confidence in the company's potential for significant free cash flow in the coming years and its focus on proprietary products. These developments highlight the company's recent financial adjustments and strategic positioning in the aerospace sector. However, it is important to note that these projections are based on analyst expectations, and actual results may vary.
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