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Westlake Chemical (WLK) Prices Senior Notes Offering of $1.7B
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Westlake Chemical Company (WLK - Free Report) recently priced its earlier announced underwritten public offering of $300 million total principal amount of senior unsecured notes due 2024, $350 million total principal amount of senior unsecured notes due 2041, $600 million total principal amount of senior unsecured notes due 2051 and $450 million total principal amount of senior unsecured notes due 2061 along with the 2024 notes, the 2041 Notes and the 2051 Notes under its existing shelf registration statement.
The 2024 Notes will bear interest at a rate of 0.875% annually and will mature on Aug 15, 2024. The 2041 Notes will bear 2.875% interest annually and will mature on Aug 15, 2041. The 2051 Notes will bear interest at a rate of 3.125% annually and will mature on Aug 15, 2051. Moreover, the 2061 Notes will bear 3.375% interest annually and will mature on Aug 15, 2061. The sale of the Notes is expected to close on Aug 19, 2021, subject to the satisfaction of customary closing conditions.
Westlake Chemical plans to use the net proceeds from the proposed public offering of the Notes to fund a portion of the purchase price of its pending acquisitions. It plans to fund the buyout of 100% of the issued and outstanding equity interests of certain subsidiaries of Boral Industries Inc. engaged in Boral Limited’s North American building products businesses in roofing, siding, trim and shutters, decorative stone as well as windows for a purchase price of $2.15 billion in cash, subject to certain post-closing adjustments.
It also plans to use the fund for acquiring Lasco Fittings, Inc. for a purchase price of $252.5 million in cash, subject to certain post-closing adjustments and DX Acquisition Corp. for a purchase price of $170 million in cash, subject to certain post-closing adjustments as well as to pay related fees and expenses.
Shares of Westlake Chemical are up 43.1% in the past year compared with 40.8% surge of its industry.
Image Source: Zacks Investment Research
Westlake Chemical, in its last earnings call, stated that it sees continued strong global demand in polyethylene, PVC and downstream building products on strong markets for the downstream uses of its products including residential construction, packaging and healthcare. The company is focused on operating its facilities safely and efficiently. It is also making disciplined investments, launching new products, lowering costs and leveraging its current products and footprint globally.
Westlake Chemical currently flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 455.7% for the current year. The company’s shares have surged 169.8% in a year. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 44.6% in the past year. It currently carries a Zacks Rank #2 (Buy).
Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have rallied 35.1% in the past year. It currently holds a Zacks Rank #2.
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Westlake Chemical (WLK) Prices Senior Notes Offering of $1.7B
Westlake Chemical Company (WLK - Free Report) recently priced its earlier announced underwritten public offering of $300 million total principal amount of senior unsecured notes due 2024, $350 million total principal amount of senior unsecured notes due 2041, $600 million total principal amount of senior unsecured notes due 2051 and $450 million total principal amount of senior unsecured notes due 2061 along with the 2024 notes, the 2041 Notes and the 2051 Notes under its existing shelf registration statement.
The 2024 Notes will bear interest at a rate of 0.875% annually and will mature on Aug 15, 2024. The 2041 Notes will bear 2.875% interest annually and will mature on Aug 15, 2041. The 2051 Notes will bear interest at a rate of 3.125% annually and will mature on Aug 15, 2051. Moreover, the 2061 Notes will bear 3.375% interest annually and will mature on Aug 15, 2061. The sale of the Notes is expected to close on Aug 19, 2021, subject to the satisfaction of customary closing conditions.
Westlake Chemical plans to use the net proceeds from the proposed public offering of the Notes to fund a portion of the purchase price of its pending acquisitions. It plans to fund the buyout of 100% of the issued and outstanding equity interests of certain subsidiaries of Boral Industries Inc. engaged in Boral Limited’s North American building products businesses in roofing, siding, trim and shutters, decorative stone as well as windows for a purchase price of $2.15 billion in cash, subject to certain post-closing adjustments.
It also plans to use the fund for acquiring Lasco Fittings, Inc. for a purchase price of $252.5 million in cash, subject to certain post-closing adjustments and DX Acquisition Corp. for a purchase price of $170 million in cash, subject to certain post-closing adjustments as well as to pay related fees and expenses.
Shares of Westlake Chemical are up 43.1% in the past year compared with 40.8% surge of its industry.
Image Source: Zacks Investment Research
Westlake Chemical, in its last earnings call, stated that it sees continued strong global demand in polyethylene, PVC and downstream building products on strong markets for the downstream uses of its products including residential construction, packaging and healthcare. The company is focused on operating its facilities safely and efficiently. It is also making disciplined investments, launching new products, lowering costs and leveraging its current products and footprint globally.
Westlake Chemical Corporation Price and Consensus
Westlake Chemical Corporation price-consensus-chart | Westlake Chemical Corporation Quote
Zacks Rank & Other Key Picks
Westlake Chemical currently flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 455.7% for the current year. The company’s shares have surged 169.8% in a year. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 44.6% in the past year. It currently carries a Zacks Rank #2 (Buy).
Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have rallied 35.1% in the past year. It currently holds a Zacks Rank #2.