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MKS Instruments Lowers Debt on Loan Repayment & Reprice


MKS Instruments, Inc.’s MKSI deleveraging strategy remains on track, as the company has successfully completed its eighth voluntary prepayment and fourth repricing of secured term loan.

Over the last three months, this Zacks Rank #2 (Buy) stock appreciated 20.6%, outperforming 7.3% growth recorded by the industry.

The company is poised to grow on the back of sturdier semiconductor business, stronger innovation, superior customer relationships, business expansion in high-growth markets and balance sheet solidification.

Inside the Headlines

MKS Instruments reduced its debt by $50 million with the aforementioned term-loan prepayment, reducing its outstanding principle to $348 million (as of Mar 31, 2018) from the $780 million, at origination.

In addition to this, the company noted that the lenders have settled to an adjustment that results in a cut down on the term loans’ interest spread by 25 basis points to LIBOR plus 1.75% from LIBOR plus 2.00%.

Both the above-mentioned moves are in sync with the company’s efforts to lower the cost of capital and deleverage its balance sheet. Since origination of these initiatives (Apr 29, 2016), MKS Instruments has lowered its non-GAAP interest expense by more than 70%, on a yearly basis. The company made voluntary prepayments worth $425 million, during the same time frame.

Other Stocks to Consider

Some other top-ranked stocks in the Zacks Computer and Technology sector are listed below:

Applied Materials, Inc. AMAT sports a Zacks Rank #1 (Strong Buy). The company’s earnings per share (EPS) are projected to grow 13.3% in the next three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies, Inc. A carries a Zacks Rank of 2 and its EPS is estimated to rise 10.8% over the next three to five years.

CACI International, Inc. CACI is another Zacks #2 Ranked player. The company’s EPS will likely be up 10% during the same time frame.

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