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Ashland (ASH) Wraps Up Senior Notes Offering of $450 Million

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Ashland Global Holdings Inc. (ASH - Free Report) announced that its indirect, fully-owned subsidiary, Ashland LLC, has completed its earlier-announced offering of $450 million total principal amount of 3.375% senior notes due 2031.

The notes are senior unsecured obligations of Ashland LLC and are initially guaranteed on an unsecured basis by the company.

Ashland plans to utilize the net proceeds of the offering, after deducting initial purchasers’ discounts as well as other fees and expenses to redeem obligations under its outstanding 4.75% senior notes due 2022.

Ashland also intends to pay any premiums, penalties, fees and expenses related therewith, with any balance net proceeds to be held as cash on balance sheet and used for general corporate purposes. This may include working capital, capital expenditures as well as repayment of indebtedness.

The notes were offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. It was also offered to non-U.S. individuals outside the United States pursuant to Regulation S under the Securities Act.

Shares of Ashland have gained 10.5% in the past year compared with 21.2% rise of the industry.

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Ashland, in its last earnings call, stated that it is working to leverage the current incremental demand of its consumers. The company also reaffirmed its expectations for full-year results.

 

Zacks Rank & Key Picks

Ashland currently carries a Zacks Rank #3 (Hold).

Some better-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 489.2% for the current year. The company’s shares have surged 164.6% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). 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 41.6% in the past year. It currently carries a Zacks Rank #2.

Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 39.3% in the past year. It currently holds a Zacks Rank #2.


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