Markets

Albemarle (ALB) Intends to Redeem Senior Notes Due 2019

Albemarle CorporationALB has announced its plan to redeem all of its outstanding 3.000% senior notes due 2019 on Feb 10, 2017. Albemarle is a leading player in the global specialty chemicals industry.

The notes will be redeemed at a price equal to the greater of 100% of the principal amount and the sum of the present values of the balance scheduled payments of principal and interest on the notes from the redemption date through the "Par Call" Date. In each case, the notes will be discounted to the date of redemption on a semi-annual basis at the treasury rate plus 25 basis points. The notes will be repaid with the net proceeds from Albemarle's previously completed divestiture of its Chemetall Surface Treatment unit.

Holders of any notes in certificated form will be paid the redemption price upon presentation and surrender of their notes at the address of the trustee and paying agent. The payment of the redemption price will be made through the facilities of The Depository Trust Company in the usual manner. Notes called for redemption must be surrendered to collect the price.

Albemarle's shares have gained 15.1% over the past three months, outperforming the Zacks categorized Chemicals-Diversified industry's gain of 9.9% over the same time frame. Albemarle's adjusted earnings for third-quarter 2016 topped the Zacks Consensus Estimate. The company raised its earnings outlook as a result of favorable performance across its Lithium and Refining Solutions segments.

As a part of its plans to strengthen its lithium business, the company recently closed the acquisition of the lithium assets of Jiangxi Jiangli New Materials Science and Technology Co. Ltd. for roughly $145 million. This move will allow Albemarle to supply premium lithium salts to an expanded global customer base thereby helping it to meet its goal of capturing 50% of the growth in the lithium industry.

Albemarle, in Sep 2016, also entered into a deal with Bolland Minera S.A. The deal granted Albemarle exclusive exploration and acquisition rights to a lithium resource in Antofalla, expected to be biggest lithium resource in Argentina. Moreover, the company recently agreed to amend its lithium production rights agreement with the Chilean Economic Development Agency, effective Dec 30, 2016.

This agreement allows Albemarle to expand the company's battery grade manufacturing plants in La Negra, Antofagasta with adequate lithium. The deal will enable further growth of its long-term customers in the energy storage market and other high growth applications.

Albemarle is also selling non-core businesses and assets to focus on its key businesses. As part of this move, the company recently completed the sale of its Chemetall Surface Treatment unit to German chemical giant BASF for around $3.2 billion. Last year, the company also concluded the sale of its mineral flame retardants and specialty chemicals businesses to Huber Engineered Materials. Albemarle also completed the divestiture of the tribotecc metal sulfides business to Treibacher Industrie AG.

Albemarle Corporation Price and Consensus

Albemarle Corporation Price and Consensus | Albemarle Corporation Quote

Albemarle currently carries a Zacks Rank #2 (Buy).

Other Stocks to Consider

Other well-placed companies in the chemical space include BASF SE BASFY , Methanex Corp. MEOH and Kronos Worldwide, Inc. KRO , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

BASF has an expected long-term growth of 7.7%.

Methanex has an expected long-term growth of 15%.

Kronos has an expected long-term growth of 5%.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BASF SE (BASFY): Free Stock Analysis Report

Methanex Corporation (MEOH): Free Stock Analysis Report

Albemarle Corporation (ALB): Free Stock Analysis Report

Kronos Worldwide Inc (KRO): Free Stock Analysis 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 Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MEOH ALB KRO

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More