Cresud (BCBA:CRESm) Inc. (NASDAQ:CRESY), a prominent real estate and agriculture company, has successfully issued Series XLVII notes in the local Argentine capital markets, raising $64.4 million. The offering, which was announced today, was slightly under-subscribed, with the amount offered at $68.9 million.
The notes carry an interest rate of 7.00% and were issued at face value. Investors will receive interest payments on a semiannual basis starting May 15, 2025. The notes are set to mature on November 15, 2028, with principal repayment occurring in a single bullet payment at maturity.
The issuance and settlement date for the Series XLVII notes is scheduled for November 15, 2024. This move is part of Cresud's financial strategy to raise capital within the local market. Cresud, with its business address in Buenos Aires, Argentina, operates under the jurisdiction of the Republic of Argentina.
The company's latest financial maneuver was filed under the rules of the Securities and Exchange Commission (SEC) on a Form 6-K, indicating a report of a foreign issuer. The details of the note issuance were included in the English translation of the letter filed with the Comision Nacional de Valores and Bolsas y Mercados Argentinos on the same day.
Investors and market watchers can find this information based on a press release statement.
In other recent news, Cresud Inc. has announced a series of significant financial developments. The company has repurchased a significant portion of its common shares, approximately 5.41% of the total shares authorized for repurchase under the current program. This move is part of Cresud's capital allocation strategy and reflects the company's commitment to managing its equity efficiently.
In addition, Cresud's shareholders approved financial documents for the fiscal year ending June 30, 2024, agreeing on a net income allocation of approximately 70.8 billion Argentine pesos. This allocation includes a substantial cash dividend distribution of ARS 45 billion for its shareholders.
Further, Cresud has altered the terms of its outstanding warrants, increasing the number of shares that can be acquired per warrant and reducing the exercise price per share. The company has also successfully sold a portion of its "Los Pozos" property in Salta Province, Argentina, for a total of $2.23 million.
Lastly, to strengthen its capital structure and diversify its financing sources, Cresud issued Series XLVI notes, raising an equivalent of USD 28.6 million.
InvestingPro Insights
Cresud's recent $64.4 million note issuance aligns with its strong market position and financial performance. According to InvestingPro data, the company boasts a market capitalization of $733.91 million and has demonstrated impressive revenue growth, with a 294.53% increase in the last twelve months as of Q1 2025. This robust growth may have contributed to investor confidence in the new notes offering.
InvestingPro Tips highlight Cresud's attractiveness to income-focused investors, noting that the company "Pays a significant dividend to shareholders" and "Has raised its dividend for 3 consecutive years." With a current dividend yield of 6.93%, Cresud's notes offering at 7.00% interest appears competitive with its equity returns.
The company's strong recent performance is further evidenced by InvestingPro Tips indicating "Strong return over the last month" and "Large price uptick over the last six months." These trends suggest positive market sentiment towards Cresud, which may have facilitated the successful note issuance.
For investors seeking a deeper understanding of Cresud's financial health and market position, InvestingPro offers 7 additional tips, providing a comprehensive analysis to inform investment decisions.
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