Carter's (CRI) stock surged 5.03% during Thursday's intraday trading session, following the announcement of an upsized senior notes offering by its subsidiary. The William Carter Company, a subsidiary of Carter's, has successfully priced a $575 million offering of 7.375% senior notes due 2031, marking a $75 million increase from the initial offering size.
The company revealed that the notes were priced at par, with the offering expected to close on November 13. This strategic financial move appears to have resonated positively with investors, driving the stock's significant upward movement. The successful upsizing of the offering may be interpreted as a sign of strong demand and investor confidence in the company's long-term prospects.
Carter's plans to utilize the proceeds from this offering, along with cash on hand, to redeem its existing 5.625% senior notes due 2027. This refinancing strategy could potentially lead to more favorable terms for the company's debt structure. Any remaining funds will be allocated for general corporate purposes, providing Carter's with additional financial flexibility. The market's enthusiastic response suggests that investors view this financial maneuver as a positive step for the company's fiscal health and future growth opportunities.
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