FMC Closes $400M Debt Offering


FMC Corp. (FMC) announced the closure of the sale of $400 million aggregate principal amount of its 4.100% Senior Notes due Feb 1, 2024, in an underwritten registered public offering. The notes were sold following an effective shelf registration statement which the company filed with the Securities and Exchange Commission on Nov 2, 2012, and a prospectus supplement submitted on Nov 13, 2013.

Recently, the $400 million Senior Notes was assigned a Baa1 rating by Moody's Investors Service. Moody’s granted the rating based on FMC’s strong business profile and performance. According to Moody’s, FMC occupies a substantial market position in both agricultural and biopolymers, which protects it from the cyclicality usually present in the global chemicals industry. Furthermore, high petrochemical feedstock and energy costs are not a concern for FMC.

FMC Corp. plans to utilize the net proceeds from this offering to repay its commercial paper notes and for other general corporate purposes.

FMC Corp. released its third-quarter 2013 results in Oct 2013. The company’s consolidated adjusted earnings were 82 cents per share, missing the Zacks Consensus Estimate by a penny but exceeding the year-ago adjusted earnings of 77 cents.

Adjusted earnings excluded charges (including those related to restructuring and acquisitions) of $92.3 million. Consolidated profit, as reported, fell 80% year over year to $17.9 million (or 13 cents per share) from $90 million (or 65 cents a share), hurt by sizable charges.

Revenues rose roughly 16% year over year to $957.4 million in the reported quarter on strength in the company’s core agricultural solutions business. It however trailed the Zacks Consensus Estimate of $966 million.

FMC Corp. is a major diversified chemical company that serves agricultural, industrial, environmental and consumer markets across the globe. It is a leading maker of lithium-based materials for primary and rechargeable batteries used in laptops, cellular phones and electric cars.

FMC Corp. currently holds a short-term Zacks Rank #3 (Hold).

Other companies in the chemical industry worth considering include Methanex Corp. (MEOH), Asahi Kasei Corp. (AHKSY) and BASF SE (BASFY). While Methanex and Asahi Kasei hold a Zacks Rank #1 (Strong Buy), BASF carries a Zacks Rank #2 (Buy).

Read the Full Research Report on FMC
Read the Full Research Report on BASFY
Read the Full Research Report on MEOH
Read the Full Research Report on AHKSY

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