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.
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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).