Back to top

Image: Bigstock

Westlake (WLK) Announces Optional Redemption of Senior Notes

Read MoreHide Full Article

Westlake Chemical Corporation (WLK - Free Report) has delivered notices for the optional redemption of all its outstanding 4.875% senior notes due 2023 (roughly $433.8 million total principal amount) and Axiall Corporation 4.875% senior notes due 2023 (around $16.2 million total principal amount).

The notes will be optionally redeemed on May 15 at a redemption price equal to 102.438% of the principal amount of 2023 notes plus unpaid and accrued interest on the same to the redemption date. The company will primarily use cash in hand and borrowings under its revolving credit facility, if necessary, to fund the redemption price.

Shares of Westlake Chemical have moved up 9.8% in the past three months, outperforming the industry’s 7.4% growth.


 

 

Notably, the company ended the fourth quarter of 2017 with cash and cash equivalents of approximately $1,531 million, up 233.6% year over year. Cash flow from operations was around $575 million, up 98.3% year over year.

Long-term debt was $3,127 million at the end of the quarter, down 15% from $3,679 million a year ago.

The company noted that since its Axiall acquisition in August 2016, it has made a considerable progress in integration and improvement of activities and continued investing in bettering operations and creating additional value related to the transaction.

 

Zacks Rank & Key Picks

Westlake Chemical carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the basic materials space are LyondellBasell Industries N.V. (LYB - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Daqo New Energy Corp. (DQ - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LyondellBasell has an expected long-term earnings growth rate of 9%. Its shares have moved up 11% over the last six months.

CF Industries has an expected long-term earnings growth rate of 8%. Its shares have gained 4.8% over the last six months.

Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have rallied 62.3% over the past six months.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Published in