) recently priced $500 million worth of notes; this being the
second issue in the month of February, 2013. These notes, offered
under the company's universal shelf registration statement, carry
a 1.20% interest rate and fall due on March 4, 2018.
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The offer price for these notes has been fixed at 99.874% of
principal amount plus accrued interest, if any. Yield to maturity
is expected to come around 1.226%. Interest will be paid
semi-annually on March 4 and September 4. The first installment
falls due on September 4, 2013.
The offering will consummate on March 4, 2013.
Praxair intends to use the proceeds from the issuance, likely to
approximate $497.5 million, for repaying short-term debt and for
general corporate purposes. Prior to this issue, the industrial
gas producer and supplier had raised funds from the market
amounting to $900 million in February 2013, $700 million in
November 2012, $500 million in August 2012 and $600 million in
February 2012 through issuance of notes.
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 $6.80, reflecting
annual growth of 7.8% and 13.4%, respectively.
The stock currently carries a Zacks Rank #3 (Hold). Other stocks
to watch out for in the industry are
), each with a Zacks Rank #1 (Strong Buy).