Markets
KOP

Westlake Chemical (WLK) Declares Pricing of Tax-Exempt Bonds

Westlake Chemical CorporationWLK declared that it has priced its earlier announced remarketing of Community Development Authority Revenue Refunding (Westlake Chemical Corporation Projects) and Louisiana Local Government Environmental Facilities Bonds, series 2017 of $250 million total principal amount of due 2032.

According to Westlake Chemical, the 2017 Revenue Refunding Bonds will carry an interest rate of 3.5% per year and will mature on Nov 1, 2032. Regarding the remarketing, Westlake Chemical will collateralize its obligations under the Amended and Restated Loan Agreement regarding the 2017 Revenue Refunding Bonds by issuing $250 million total principal amount of its 3.50% senior notes due 2032.

Subject to customary closing conditions, the remarketing is scheduled to close on Nov 29, 2017.

The company plans to use the net proceeds from the remarketing along with cash in hand, its underwritten public offering of $500 million of 4.375% senior notes (scheduled to close on Nov 28, 2017) and proceeds from borrowings under its revolving credit facility, to redeem $1.138 billion total principal amount of Westlake Chemical's and its certain fully-owned subsidiaries' 4.875% senior notes due 2023 and 4.625% senior notes due 2021, on or after the call dates of May 15, 2018 and Feb 15, 2018, respectively.

Westlake Chemical's shares have moved up 30.4% in the past three months, outperforming the industry 's 24.6% growth.

Westlake Chemical recorded a net income of $210.8 million or $1.61 per share for third-quarter 2017, up roughly 220.9% from $65.7 million or 51 cents a year ago. Barring one-time items, earnings for the reported quarter were $1.65 per share, which topped the Zacks Consensus Estimate of $1.39.

According to Westlake Chemical, third-quarter 2017 results benefited from demand for all major products in both Vinyls and Olefins segments along with higher prices in the Vinyls segment. Moving forward, the company believes that the Axiall buyout and continued investments to improve the reliability and operational efficiency of its assets will enable it to fully leverage the improving Vinyls market.

Westlake Chemical Corporation Price and Consensus

Westlake Chemical Corporation Price and Consensus | Westlake Chemical Corporation Quote

Zacks Rank & Other Stocks to Consider

Westlake Chemical currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Koppers Holdings Inc. KOP , Daqo New Energy Corp. DQ and Kronos Worldwide Inc. KRO . All three stocks flaunt a Zacks Rank #1. You can see the complete list of today's Zacks Rank #1 stocks here .

Koppers has an expected long-term earnings growth rate of 18%. Its shares have moved up 22.7% year to date.

Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have rallied 139.9% year to date.

Kronos Worldwide has an expected long-term earnings growth rate of 5%. Its shares have surged a whopping 142.6% year to date.

Wall Street's Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

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

Kronos Worldwide Inc (KRO): Free Stock Analysis Report

Koppers Holdings Inc. (KOP): Free Stock Analysis Report

Westlake Chemical Corporation (WLK): Free Stock Analysis Report

DAQO New Energy Corp. (DQ): 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

KOP KRO DQ WLK

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