After having issued approximately $2.05 billion worth notes year-to-date, industrial gas producer and supplier, Praxair Inc. (PX) recently announced pricing of $500 million worth notes. The offering will consummate on Nov 12, 2013.
The notes, offered under the company’s universal shelf registration statement filed with the U.S. Securities and Exchange Commission, has been offered at 99.940% of the principal amount.
The notes are due to mature on Feb 28, 2019 and carry a coupon rate of 1.9% per annum. Interest will be paid semi-annually on Feb 28 and Aug 31. The first interest installment will commence from Aug 31, 2014. These notes are expected to yield 1.911% on maturity.
The offering is anticipated to contribute roughly $497.9 million that Praxair intends to use to satisfy its general corporate needs, including debt repayments and share repurchases.
Praxair’s notes issuance has been rated ‘A2 (Stable)’ by Moody's Investors Service.
Prior to this offering, Praxair had issued $475 million worth of 1.25% Notes due 2018 and $175 million worth of 3.55% Notes due on 2042 in Apr 2013; $500 million worth of 1.20% Notes due 2018; and $400 million worth of 0.75% Notes due on 2016 as well as $500 million worth of 2.70% Notes due 2023 in Feb 2013 .
In the recently released third quarter 2013 results, Praxair reported 0.25% sequential increase in its long-term debt that stood at $7,883 million at the end of the quarter. Interest expense, net, paid during the quarter totaled $41.0 million, up 13.9% year over year. Increase in debt levels will increase Praxair’s financial obligations further in the quarters ahead.
Praxair Inc. is the largest industrial gas producer and supplier in the Americas and one of the leading gas producing companies worldwide. The stock currently carries a Zacks Rank #3 (Hold).
Other stocks to watch out for in the industry are Asahi Kasei Corporation (AHKSY) and Methanex Corporation (MEOH), each with a Zacks Rank #1 (Strong Buy) while E. I. du Pont de Nemours and Company (DD) carry a Zacks Rank #2 (Buy).