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Westlake (WLK) Announces Optional Redemption of Senior Notes

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Westlake Chemical Corporation WLK has delivered notices for the optional redemption of all its outstanding 4.875% senior notes due 2023 (roughly $433.8 million total principal amount) and Axiall Corporation 4.875% senior notes due 2023 (around $16.2 million total principal amount).

The notes will be optionally redeemed on May 15 at a redemption price equal to 102.438% of the principal amount of 2023 notes plus unpaid and accrued interest on the same to the redemption date. The company will primarily use cash in hand and borrowings under its revolving credit facility, if necessary, to fund the redemption price.

Shares of Westlake Chemical have moved up 9.8% in the past three months, outperforming the industry’s 7.4% growth.


 

 

Notably, the company ended the fourth quarter of 2017 with cash and cash equivalents of approximately $1,531 million, up 233.6% year over year. Cash flow from operations was around $575 million, up 98.3% year over year.

Long-term debt was $3,127 million at the end of the quarter, down 15% from $3,679 million a year ago.

The company noted that since its Axiall acquisition in August 2016, it has made a considerable progress in integration and improvement of activities and continued investing in bettering operations and creating additional value related to the transaction.

Westlake Chemical Corporation Price and Consensus

Westlake Chemical Corporation Price and Consensus | Westlake Chemical Corporation Quote

 

Zacks Rank & Key Picks

Westlake Chemical carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the basic materials space are LyondellBasell Industries N.V. LYB, CF Industries Holdings, Inc. CF and Daqo New Energy Corp. DQ, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LyondellBasell has an expected long-term earnings growth rate of 9%. Its shares have moved up 11% over the last six months.

CF Industries has an expected long-term earnings growth rate of 8%. Its shares have gained 4.8% over the last six months.

Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have rallied 62.3% over the past six months.

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