Ashland Redeems Senior Notes - Analyst Blog

By
A A A

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

SHIN-ETSU CHEM (SHECY): Get Free Report

To read this article on Zacks.com 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 The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ASH , CE , MEOH , SHECY

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

ColonialMills_USETBASITE
ColonialMills_USETBASITE            

Stocks

Referenced

Most Active by Volume

81,768,754
  • $74.11 ▼ 2.31%
77,395,717
  • $9.42 ▼ 5.80%
67,947,205
  • $17.02 ▲ 0.18%
53,864,169
  • $32.58 ▼ 3.95%
44,748,631
  • $11.32 ▲ 0.98%
42,926,278
  • $9.97 ▼ 9.03%
42,401,116
  • $41.80 ▼ 0.67%
39,870,972
  • $106.98 ▼ 0.34%
As of 10/30/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com