Ashland Redeems Senior Notes - Analyst Blog


Shutterstock photo

Specialty chemicals maker Ashland Inc. ( ASH ) has declared the redemption of the remaining 12% of its outstanding 9.125% Senior Notes due 2017 on June 1, 2013. With this, Ashland has completed the redemption of all of its remaining outstanding 9.125% Senior Notes .

In July last year, Ashland had offered a cash tender for any and its entire outstanding $650 million aggregate principal amount of the Senior Notes due 2017. At that time, roughly 88% or $572 million aggregate principal amount of the outstanding Senior Notes were tendered. The remaining 12% or around $78 million aggregate principal amount of outstanding Notes are now been redeemed.

The Senior Notes holders were paid $1,045.63 per $1,000.00 aggregate principal amount of the Notes along with accrued and unpaid interest up to, but not including, the redemption date.

Ashland makes nickel and cobalt-based alloys in sheet coil and plate forms. Its Consumer Markets segment markets Valvoline, world's first lubricating oil. It also operates the Valvoline Instant Oil Change, the nation's second-largest franchised quick-lube chain. Ashland offers specialty chemicals to more than 100 countries.

Last month, Ashland reported second-quarter fiscal 2013 (ended Mar 31, 2013) adjusted earnings (excluding one-time items) from continuing operations of $1.78 per share, outshining the Zacks Consensus Estimate of $1.56 a share.

Profits from continuing operations, as reported, fell roughly 39% year over year to $55 million or 68 cents a share. Revenues fell 5% year over year to $1,974 million, missing the Zacks Consensus Estimate of $2,057 million. Ashland was challenged by weakness prevailing in a number of key regions, namely Europe. It witnessed lower sales across each of its business segments in the quarter on lower demand.

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

Other companies in the chemical industry that are worth considering include Shin-Etsu Chemical Co., Ltd. ( SHECY ), Celanese Corporation ( CE ) and Methanex Corp. ( MEOH ). All of them retain a Zacks Rank #1 (Strong Buy)

ASHLAND INC (ASH): Free Stock Analysis Report

CELANESE CP-A (CE): Free Stock Analysis Report

METHANEX CORP (MEOH): Free Stock Analysis Report


To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: ASH , CE , MEOH , SHECY

More from


Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by