Praxair Prices $650M Notes - Analyst Blog
02 5월 2013 - 3:55AM
Zacks
Industrial gas producer and supplier, Praxair
Inc. (PX) recently priced $650 million worth of Notes,
offered under the company’s universal shelf registration statement.
The offering will consummate on May 7, 2013.
The notes have been issued by Praxair in two tranches. The first
lot consists of $475 million worth of notes that are due to expire
on Nov 7, 2018. These carry a coupon rate of 1.250% and are
expected to yield 1.258% on maturity. The second lot comprises $175
million worth of notes carrying a coupon rate of 3.550% and yield
on maturity of 3.774%. These notes are due to expire on Nov 7,
2042.
The offer price for notes due 2018 and 2042 has been fixed at
99.958% and 96.035%, respectively, of principal amount. Interest
will be paid semi-annually on May 7 and Nov 7. The first
installment falls due on Nov 7, 2013. Praxair intends to use the
proceeds from the issuance for repaying debt, share repurchases and
for general corporate purposes.
Issuance of notes has been a consistent mode of raising funds from
the market for Praxair. If we steal a look into the past few
quarters, the company had raised funds from the market amounting to
$1,400 million in Feb 2013, $700 million in Nov 2012, $500 million
in Aug 2012 and $600 million in Feb 2012 through issuance of
notes.
Exiting the first quarter 2013, long-term debt balance of Praxair
stood at $7,772.0 million, up 16.3% sequentially. Interest paid
during the quarter totaled $40 million, up 8.1% year over year.
Rising debt burden will increase the company’s financial
obligations all the more in the quarters ahead.
The current Zacks Consensus Estimate for the second quarter of 2013
is $1.49, representing a year-over-year increase of 5.1%. Estimates
for years 2013 and 2014 are $5.99 and $6.82, reflecting annual
growth of 7.6% and 13.8%, respectively.
Praxair currently has a market capitalization of $33.8 billion and
carries a Zacks Rank #3 (Hold). Other stocks to watch out for in
the industry are Shin-Etsu Chemical Co., Ltd.
(SHECY), with a Zacks Rank #1 (Strong Buy) while Celanese
Corp. (CE) and Compass Minerals International
Inc. (CMP) each carries a Zacks Rank #2 (Buy).
CELANESE CP-A (CE): Free Stock Analysis Report
COMPASS MINERLS (CMP): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
SHIN-ETSU CHEM (SHECY): Get Free Report
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