NEW YORK (TheStreet) -- Shares of Applied Materials (AMAT) - Get Report shares are continuing to decline after the company on Tuesday priced its offering of senior unsecured notes in an aggregate principal amount of $1.8 billion.

The company is offering $600 million of 2.625% senior unsecured notes due in 2020, $700 million of 3.900% senior unsecured notes due in 2025 and $500 million of 5.100% senior unsecured notes due in 2035.

The company said that net proceeds from the offering will be used to redeem or repay its $400 million 2.65% notes due on June 15, 2016.

J.P. Morgan, Citigroup, MUFG and Goldman Sachs will act as joint book-runners for the offering.

TheStreet Ratings team rates APPLIED MATERIALS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate APPLIED MATERIALS INC (AMAT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 11.5%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • AMAT's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AMAT has a quick ratio of 1.57, which demonstrates the ability of the company to cover short-term liquidity needs.
  • APPLIED MATERIALS INC has improved earnings per share by 12.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, APPLIED MATERIALS INC increased its bottom line by earning $0.87 versus $0.21 in the prior year. This year, the market expects an improvement in earnings ($1.18 versus $0.87).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 9.3% when compared to the same quarter one year prior, going from $301.00 million to $329.00 million.
  • You can view the full analysis from the report here: AMAT