Westlake Chemical Corporation (WLK - Free Report) has priced its earlier announced underwritten public offering of $500 million total principal amount of senior unsecured notes due 2047.
The notes, which will carry an interest rate of 4.375% per annum, will mature on Nov 15, 2047. Subject to customary closing conditions, the sale of notes is scheduled to close on Nov 28, 2017.
The company plans to utilize the net proceeds from the proposed public offering of the notes along with cash on hand, borrowings under its revolving credit facility, 2017 Revenue Refunding Bonds and the planned remarketing of up to $250 million total principal amount of Community Development Authority Revenue Refunding Bonds and Louisiana Local Government Environmental Facilities, to redeem $1.138 billion total principal amount of Westlake Chemical’s and its certain fully-owned subsidiaries’ 4.875% senior notes due 2023 and 4.625% senior notes due 2021, on or after the call dates of May 15, 2018 and Feb 15, 2018, respectively.
Westlake Chemical’s shares have moved up 32.2% in the past three months outperforming the industry’s 26.9% growth.
Westlake Chemical recorded a net income of $210.8 million or $1.61 per share for third-quarter 2017, up roughly 220.9% from $65.7 million or 51 cents a year ago. Barring one-time items, earnings for the reported quarter were $1.65 per share, which topped the Zacks Consensus Estimate of $1.39.
According to Westlake Chemical, third-quarter 2017 results benefited from demand for all major products in both Vinyls and Olefins segments along with higher prices in the Vinyls segment. Moving forward, the company believes that the Axiall buyout and continued investments to improve the reliability and operational efficiency of its assets will enable it to fully leverage the improving Vinyls market.
Zacks Rank & Other Stocks to Consider
Westlake Chemical currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are ArcelorMittal (MT - Free Report) , BHP Billiton PLC (BBL - Free Report) and Kronos Worldwide Inc. (KRO - Free Report) . All three stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks Rank #1 stocks here.
ArcelorMittal has an expected long-term earnings growth rate of 11.3%. Its shares have rallied 26.3% year to date.
BHP Billiton has an expected long-term earnings growth rate of 5.3%. Its shares have moved up 16.5% year to date.
Kronos Worldwide has an expected long-term earnings growth rate of 5%. Its shares have surged a whopping 123.5% year to date.
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