Clothing and accessories retailer The Gap, Inc. (GPS) recently announced the pricing of its senior notes worth $1.5 billion. The offering comprises $750 million of its 3.62% Senior Notes due 2029 and $750 million of its 3.87% Senior Notes due 2031.

Following the news, shares of the company gained marginally to close at $36.57 in extended trade on Monday.

The notes offered will be guaranteed on a senior unsecured basis. The offering is expected to close on September 27, 2021.

With the proceeds from the offering and cash in hand, the company is expected to purchase its outstanding 8.37% Senior Secured Notes due 2023, 8.62% Senior Secured Notes due 2025 and 8.87% Senior Secured Notes due 2027. (See Gap stock chart on TipRanks)

Recently, Wells Fargo analyst Ike Boruchow reiterated a Buy rating on the stock with a price target of $45, which implies upside potential of 84.7% from current levels.

According to the analyst, the company’s strong second-quarter results and bullish outlook for the second half of the year bodes well for the company.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys and 5 Holds. The average Gap price target of $36.57 implies that the stock has upside potential of 50.1% from current levels.

Gap scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained about 40.7% over the past year.

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The post Gap Announces Pricing of Senior Notes Worth $1.5B appeared first on TipRanks Financial Blog.

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By: Pathikrit Bose
Title: Gap Announces Pricing of Senior Notes Worth $1.5B
Sourced From: blog.tipranks.com/gap-announces-pricing-of-senior-notes-worth-1-5b/
Published Date: Tue, 14 Sep 2021 06:32:10 +0000

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