Pitney Bowes (PBI) to Redeem $400M of Corp. Debt; Reaffirms Outlook

Pitney Bowes Inc. (NYSE: PBI) today announced notice of its election to redeem $400 million of its bonds which are scheduled to mature in October 2012. The bonds will be repurchased substantially with cash on the balance sheet and operating cash flow. At the end of the first quarter 2012, the company had about $950 million in cash and short-term investments on its balance sheet.

According to Chairman, President and CEO, Murray Martin, “Redemption of these bonds reflects our strong free cash flow, ongoing confidence in our business and the strength of our balance sheet. We are a solidly profitable company and expect to generate $700-$800 million in free cash flow this year. Our free cash flow is sufficient to pay our dividend, reduce our debt and support ongoing investment in our business. This action also reinforces our support for maintaining our investment grade ratings.”

The company is reaffirming its guidance for the year for revenue, adjusted earnings per share and free cash flow as provided in its first quarter earnings press release.

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