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Eastman Chemical (EMN) Declares Public Offering of Notes

EMN CE FMC CC

Trades from $3

Eastman Chemical Company (EMN - Free Report) has declared the public offering of €200 million principal amount of additional 1.50% notes due 2023 and €500 million principal amount of 1.875% notes due 2026.

The company noted that the 2023 Notes will be issued as additional notes of the same series as its currently outstanding €550 million aggregate principal amount of 1.50% notes due 2023, issued on May 26, 2016 (the existing 2023 notes). The 2023 Notes will be treated as a single series with the existing 2023 notes and will have the same terms (other than the date of issue and the initial price as the existing 2023 notes). The Notes offering is anticipated to close on Nov 21, 2016, subject to customary closing conditions.

Eastman plans to utilize a part of the net proceeds from the offering to complete the earlier announced cash tender offer for up to $400 million combined aggregate principal amount of its 4.5% notes due 2021, 3.6% notes due 2022, 7 1/4% debentures due 2024, 7 5/8% debentures due 2024, 3.80% notes due 2025 and 7.60% debentures due 2027, which offer will expire on Nov 29, 2016, unless extended or terminated earlier, and to redeem the roughly $160 million outstanding aggregate principal amount of its 6.30% notes due 2018. The company also plans to utilize the balance net proceeds to repay or redeem a part of the $500 million outstanding aggregate principal amount of its 2.4% notes due 2017, either at or before maturity.

Eastman’s shares closed around 0.4% higher at $74.47 on Nov 17.

Eastman saw lower profits in the third quarter of 2016 as its sales fell on lower selling prices. The company recorded profit (as reported) of $232 million or $1.56 per share, a roughly 9% decline from $256 million or $1.71 per share recorded a year ago.

Barring one-time items, earnings were $1.86 per share for the quarter, up from $1.84 per share in the year ago-quarter. Earnings beat the Zacks Consensus Estimate of $1.67.

Eastman Chemical is a Zacks Rank #3 (Hold).

Other Stocks to Consider

Better-ranked companies in the chemical space include The Chemours Company (CC - Free Report) , FMC Corp. (FMC - Free Report) and Celanese Corp. (CE - Free Report) .

Chemours sports a Zacks Rank #1 (Strong Buy). The company has an expected earnings growth of 44.7% for the current year. You can see the complete list of today’s Zacks #1 Rank stocks here.

FMC also sports a Zacks Rank #1 and has an expected earnings growth of around 14.1% for the current year.

Celanese has an expected earnings growth of around 9.5% for the current year. The stock carries a Zacks Rank #2 (Buy).

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