UPDATED 12:44 EST / MARCH 04 2011

Juniper Network’s Increased Bond Sales Signify Strong U.S. Market

A recent report compiled by Bloomberg informs strong sales of debut offering of Juniper Networks, accounting to $1 billion. This is combined with $24 billion of debt in Ally Financial’s kitty and clearly reflects the strong and strengthening U.S. Market. The company has so far sold the following:

$300 million of five-year notes that paid 100 basis points more than Treasuries,

$300 million of 10-year notes that paid 120 basis points more than benchmarks, and

$400 million of 30-year bonds at a 145 basis-point spread

Juniper planned for the financing a few days back for a debt sale as a debt offering. The proceeds will be used by Juniper for general corporate purposes, which may include capital expenditures, share repurchases and acquisitions. Luckily, the plans turned out to be successful, and demonstrated their expectations to jump forward in the market, or even possibly make a large acquisition.

Juniper has not only successfully completed its first debt offering, but also maintained its financial market stability after its Analyst Day growth strategy was revealed. Auriga Research has also come out with its report on Juniper Networks, saying,

“We maintain our Buy rating and $54 price target for Juniper, as the company laid out its disruptive, innovation-driven growth strategy in its Analyst Day today and also introduced its new packet transport switch for the ‘super’ core of service provider networks. JNPR also re-iterated its operating targets of 20%+ top-line growth and 25%+ operating margins. Combined with the growth potential of new QFabric data center product and MobileNext EPC solution, we continue to see JNPR as well positioned to grow at 20%+ rates with significant operating leverage over the next 4-5 years. We remain buyers at these levels.”

Juniper Networks also faced a disruptive QFabric product release , thanks to its ever-growing rivalry with Cisco. This new networking system named QFabic was officially unveiled an event at San Francisco.  All in all, it was a good week for Juniper, from a successful debt debut to new product launch. It also won the award for Best Security Hardware Product at 2011 Global Excellence Awards earlier this month.


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