Airgas completes 6.25 pct senior notes redemption

Airgas completes notes redemption of 6.25 percent senior notes, plans to record charges

• On 12:17 pm EDT, Wednesday October 14, 2009

RADNOR, Pa. (AP) -- Airgas Inc., a distributor of industrial and specialty gases and welding and safety-related products, said Wednesday it will take charges on the early of redemption of debt in its fiscal second and third quarters.

Airgas said the third-quarter charge is related to the redemption of all its $150 million 6.25 percent senior subordinated notes due July 15, 2014, which it completed at a price of 103.125 percent.

Airgas will record a loss of about $6 million -- $4 million, or 5 cents per share, after tax -- in the quarter ending Dec. 31 related to the redemption premium and the write-off of unamortized debt issuance costs.

During its fiscal second quarter, Airgas repurchased $58 million of its $400 million 7.125 percent senior subordinated notes due Oct. 1, 2018, at an average price of 102.2 percent.

The company will recognize a loss of about $2 million -- $1.3 million, or 2 cents per share, after tax -- in its fiscal second quarter ended Sept. 30 related to the redemption premium and the write-off of unamortized debt issuance costs.

Airgas also expects a second-quarter charge of about $1.7 million -- $1 million, or a penny per share, after tax -- related to withdrawal from a multi-employer pension plan.

These amounts were not included in the company's previously issued second-quarter earnings guidance of 64 cents to 69 cents per share.

Airgas shares rose 72 cents, or 1.5 percent, to $49.12 in midday trading.

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