Westlake Chemical Corporation (WLK Quick QuoteWLK - Free Report) has declared the completion of a new $1 billion unsecured revolving credit agreement.

The new facility replaces the earlier asset-based revolving facility that has been terminated. The new agreement, with a five-year maturity, will be utilized for working capital as well as general corporate requirements. The completion of the agreement increases the company’s financial flexibility. It also improves the company’s liquidity position to finance growth plans.

Recently, Westlake Chemical also closed an offering of $750 million of principal amount of 3.6% senior unsecured notes due 2026, along with $700 million principal amount of 5% senior notes due 2046. The proceeds from these offerings, together with the proceeds from other financing transactions and cash on hand, are intended to be used to fund the proposed acquisition of Axiall Corporation , to repay debt of Axiall and other related fees.

Westlake Chemical’s second-quarter 2016 reported earnings of 85 cents per share and sales of $1,086.1 million decreased year over year. However, adjusted earnings of $1.21 per share beat the Zacks Consensus Estimate of 95 cents. Net earnings for the quarter were primarily impacted by loss in sales due to outages and turnarounds.

Westlake Chemical’s cash and cash equivalents as of Jun 30, 2016 were $771 million, down 24.9% year over year. Long term debt of the company at the end of second-quarter 2016 was $758.5 million, down 0.7% year over year.

WESTLAKE CHEM Price

 

WESTLAKE CHEM Price | WESTLAKE CHEM Quote

Westlake Chemical currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the chemical space include Mitsubishi Chemical Holdings Corporation (MTLHY Quick QuoteMTLHY - Free Report) and Trinseo SA (TSE Quick QuoteTSE - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).

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