Stock News in Focus: Briggs & Stratton Corporation (NYSE:BGG)

Briggs & Stratton Corporation (NYSE:BGG) spotted trading -70.01% off 52-week high price. On the other end, the stock has been noted 49.74% away from the low price over the last 52-weeks. The stock changed 5.89% to recent value of $5.93. The stock transacted 692381 shares during most recent day however it has an average volume of 755.2K shares. The company has 41.52M of outstanding shares and 40.12M shares were floated in the market.  

 On Sept. 27, 2019, Briggs & Stratton Corporation (NYSE:BGG) reported that it has entered into a new revolving credit facility (facility), which provides up to $625 million in borrowing capacity subject to a borrowing base. The new revolver, which is scheduled to mature in 2024, is secured by certain of the company’s and its subsidiaries’ working capital and other assets and is an increase from the company’s previous facility of $500 million.

This new facility gives us added flexibility to fund seasonal borrowing needs and for general corporate purposes as we work to de-lever and strengthen the balance sheet, said Mark Schwertfeger, Senior Vice President and CFO of Briggs & Stratton Corporation. While borrowing under the new facility is variable, based on the aggregate amount of underlying assets, we are encouraged that the larger size provides us a foundation for our capital structure, especially as we look to ultimately retire the senior notes that mature in December 2020.

Borrowings under the new facility bear interest at a variable rate based on LIBOR plus a spread dependent on the trailing twelve month consolidated fixed charge coverage ratio as defined by the agreement. The company continues to project that fiscal 2020 consolidated interest expense will be approximately $34 million. The new facility contains a springing fixed charge coverage financial covenant that must be met if borrowings exceed a set percentage of the borrowing base.

JPMorgan Chase Bank, N.A. serves as the administrative agent of the new facility, and each of JPMorgan Chase Bank, N.A., Bank of America, N.A., Bank of Montreal and Wells Fargo Bank, National Association served as joint lead arrangers.

 Its earnings per share (EPS) expected to touch remained -671.80% for this year. BGG has a gross margin of 16.40% and an operating margin of -2.10% while its profit margin remained -3.00% for the last 12 months. 

 According to the most recent quarter its current ratio was 1.3 that represents company’s ability to meet its current financial obligations. The price moved ahead of 3.87% from the mean of 20 days, -13.47% from mean of 50 days SMA and performed -44.77% from mean of 200 days price. Company’s performance for the week was -3.73%, 45.70% for month and YTD performance remained -54.66%.

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