Jabil issues $500 million in notes to refinance debt
January 9, 2020 - Jabil is issuing $500 million in senior notes, a debt security that takes precedence over other types of debt. The new notes won’t come due until 2030. Jabil (NYSE: JBL), a manufacturing solutions business and the largest company headquartered in St. Petersburg, said in a news release it would use the proceeds to repay term loan debt. Moody’s Investor Service assigned an investment grade Baa3 rating to the new notes and said the move is a credit positive if Jabil pays off terms loans due in 2020 or 2022. Moody’s also assigned a stable outlook to the new notes, reflecting the credit agency’s expectation that revenue at Jabil will grow in the low single digit percentage range and that operating margins and free cash flow will remain steady. S&P Global Ratings rated the new notes BBB-, also an investment grade rating.