Industrial gas producer and supplier,
) recently priced $900 million worth of notes, offered under the
company's universal shelf registration statement. The offering
will consummate on Feb 21, 2013.
The current notes issuance will be given effect through the
issuing of $400 million of 0.75% notes due in 2016 and $500
million of 2.70% notes due in 2023, expected to yield 0.771% and
2.740% on maturity, respectively. The offer price for 0.75% notes
has been fixed at 99.938% of principal amount while at 99.652%
for 2.70% notes.
Interest on these notes will be paid semi-annually with the first
payment falling due on August 21, 2013. Praxair intends to use
the proceeds from the issuance for repaying short-term debt,
repurchase of shares, acquisitions and for general corporate
Prior to this issue, Praxair had raised $700 million in November
2012, $500 million in August 2012 and $600 million in February
Exiting 2012, Praxair's long-term debt balance stood at $6,685.0
million, up 4.6% sequentially. Interest paid during the year
totaled $141 million. Rising debt burden will increase the
company's financial obligations all the more in the quarters
The current Zacks Consensus Estimate for the first quarter of
2013 is $1.39, representing a year-over-year increase of 0.4%.
Estimates for years 2013 and 2014 are $6.00 and $6.82, reflecting
annual growth of 7.7% and 13.6%, respectively.
The stock currently carries a Zacks Rank #3 (Hold). Other stocks
to watch out for in the industry are
), with a Zacks Rank #1 (Strong Buy) and
Air Products & Chemicals Inc.
), each with a Zacks Rank #2 (Buy).
AIR PRODS & CHE (APD): Free Stock Analysis
(ARKAY): ETF Research Reports
BASF SE (BASFY): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
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