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Praxair Raised $500M via Notes - Analyst Blog

Industrial gas producer and supplier, Praxair Inc. ( PX ) recently opted for raising funds from the market through issuance of $500 million principal amount of Notes due to mature on August 15, 2022. The notes, expected to yield 2.224% at maturity, were offered at 99.785% of the principal amount.

The notes carry a coupon rate of 2.2% to be paid semi-annually by the company, with the first installment accruing on February 15, 2013. The notes carry an A2 rating from Moody's and A from S&P.

In the recently reported second quarter 2012 results, the company reported a 7.1% sequential drop in its long-term debt balance (net of current portions) which settled at approximately $6.0 billion. Net interest expense in the quarter came in at $33 million.

Also, the quarter's adjusted earnings per share came in at $1.42, up 3.0% from $1.38 reported in the year-ago quarter. Earnings were roughly at the mid-point of management's guidance range of $1.40-$1.45 and in line with the Zacks Consensus Estimate of $1.42.

Net revenue plummeted 2% year over year to roughly $2.8 billion, due primarily to a 2% unit volume improvement, a 2% positive price impact and 2% positive impact from acquisitions. These were, however, offset by a 6% negative currency translation impact.

The current Zacks Consensus Estimate for the third quarter of 2012 is $1.40, representing a year-over-year decrease of 0.36%. Estimates for the fiscal years 2012 and 2013 are $5.65 and $6.45, reflecting annual growth of 4.05% and 14.14%, respectively.

We maintain a Neutral recommendation on Praxair. The stock also carries a Zacks #4 Rank, implying a short-term (1-3 months) Sell rating.

PRAXAIR INC (PX): Free Stock Analysis Report

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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.

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