After having issued approximately $2.05 billion worth notes
year-to-date, industrial gas producer and supplier,
) recently announced pricing of $500 million worth notes. The
offering will consummate on Nov 12, 2013.
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The notes, offered under the company's universal shelf
registration statement filed with the U.S. Securities and
Exchange Commission, has been offered at 99.940% of the principal
The notes are due to mature on Feb 28, 2019 and carry a coupon
rate of 1.9% per annum. Interest will be paid semi-annually on
Feb 28 and Aug 31. The first interest installment will commence
from Aug 31, 2014. These notes are expected to yield 1.911% on
The offering is anticipated to contribute roughly $497.9 million
that Praxair intends to use to satisfy its general corporate
needs, including debt repayments and share repurchases.
Praxair's notes issuance has been rated 'A2 (Stable)' by Moody's
Prior to this offering, Praxair had issued $475 million worth of
1.25% Notes due 2018 and $175 million worth of 3.55% Notes due on
2042 in Apr 2013; $500 million worth of 1.20% Notes due 2018; and
$400 million worth of 0.75% Notes due on 2016 as well as $500
million worth of 2.70% Notes due 2023 in Feb 2013 .
In the recently released third quarter 2013 results, Praxair
reported 0.25% sequential increase in its long-term debt that
stood at $7,883 million at the end of the quarter. Interest
expense, net, paid during the quarter totaled $41.0 million, up
13.9% year over year. Increase in debt levels will increase
Praxair's financial obligations further in the quarters ahead.
Praxair Inc. is the largest industrial gas producer and supplier
in the Americas and one of the leading gas producing companies
worldwide. The stock currently carries a Zacks Rank #3 (Hold).
Other stocks to watch out for in the industry are
Asahi Kasei Corporation
), each with a Zacks Rank #1 (Strong Buy) while
E. I. du Pont de Nemours and Company
) carry a Zacks Rank #2 (Buy).