Praxair to Raise $700M via Notes

RELATED QUOTES

SymbolPriceChange
PX131.70-0.27
APD118.47-0.70

Industrial gas producer and supplier, Praxair Inc. (PX) opted for raising funds yet again, from the market through issuance of notes worth $700 million on November 2, 2012. This is the company’s third fund raising program from the market till date in year 2012.

The current notes issuance will be given effect through the issuing of $400 million of 1.05% notes due in 2017 and $300 million of 3.55% notes due in 2042, expected to yield 1.058% and 3.584% on maturity, respectively. The offer price for 1.05% notes has been fixed at 99.961% of principal amount while at 99.378% for 3.55% notes.

Interest on these notes will be paid semi-annually with the first payment falling due on May 7, 2013. Issuance is expected to be complete by November 7, 2012. Praxair intends to use the proceeds from the issuance for repaying short-term debt, repurchase of shares and for general corporate purposes.

World’s renowned credit rating agency, Standard & Poor's Ratings Services provided its ‘A’ rating to Praxair’s unsecured notes issuance, implying a stable outlook.

Share of the company touched a new 52-week high of $110.14, on November 2, 2012, and end gaining 1.1% over the previous day’s close.

Prior to this issue, Praxair had raised funds in February and August, 2012, through issuance of $600 million of 2.45% note due in 2022 and $500 million of 2.20% notes due in 2022, respectively.

The current Zacks Consensus Estimate for the fourth quarter of 2012 is $1.39, representing a year-over-year increase of 1.9%. Estimates for years 2012 and 2013 are $5.58 and $6.24, reflecting annual growth of 2.9% and 11.8%, respectively.

We maintain a Neutral recommendation on Praxair. The stock also carries a Zacks #3 Rank, implying a short-term (1-3 months) Hold rating while the company’s prime competitor Air Products & Chemicals Inc. (APD) bears a Zacks #4 (Sell) rating.
 

Read the Full Research Report on PX

Read the Full Research Report on APD

Zacks Investment Research



More From Zacks.com
Loading...
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.2555+0.00010.00%
    USDSGD=X
    1.7350+0.0002+0.01%
    EURSGD=X
    2.1065-0.0001-0.01%
    GBPSGD=X
    81.6376-0.0362-0.04%
    SGDJPY=X
    6.1754-0.00020.00%
    SGDHKD=X
    2.60110.000.00%
    SGDMYR=X
    9,263.8320-35.8525-0.39%
    SGDIDR=X
    4.9688+0.00010.00%
    SGDCNY=X
    1.16590.000.00%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,283.70-0.90-0.07%
    GCM14.CMX
    19.43-0.01-0.04%
    SIK14.CMX
    92.88+1.82+2.00%
    ^XAU
    3.060.00-0.08%
    HGK14.CMX
    101.55+0.11+0.11%
    CLM14.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.71-0.03
    ^FVX
    2.69-0.04
    ^TNX
    3.47-0.03
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.122+0.002+1.67%
    B22.SI
    0.61+0.005+0.83%
    E5H.SI
    2.22+0.010+0.45%
    JS8.SI
    0.16+0.002+1.27%
    5GB.SI
    0.142-0.003-2.07%
    545.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.23+0.031+15.58%
    5UZ.SI
    0.22+0.020+10.00%
    D6U.SI
    0.184+0.014+8.24%
    5WD.SI
    0.275+0.020+7.84%
    5TP.SI
    0.161+0.011+7.33%
    A03.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.245-0.055-18.33%
    T18.SI
    0.196-0.024-10.91%
    5WR.SI
    0.161-0.019-10.56%
    T16.SI
    0.36-0.040-10.00%
    S24.SI
    0.098-0.010-9.26%
    C11.SI