Back to top

Analyst Blog

After having issued approximately $2.05 billion worth notes year-to-date, industrial gas producer and supplier, Praxair Inc. (PX - Analyst Report) 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 - Analyst Report), each with a Zacks Rank #1 (Strong Buy) while E. I. du Pont de Nemours and Company (DD - Analyst Report) carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
HI-CRUSH PT… HCLP 68.05 +4.74%
CTPARTNERS… CTP 12.91 +3.12%
QIHOO 360 T… QIHU 90.56 +3.11%
HOLLYSYS AU… HOLI 22.85 +2.97%
BONANZA CRE… BCEI 61.57 +2.94%