Time New York: Tue 27 Sep 01:22 am  |  Save 15% on H&R Block Online


Celanese (CE) Declares Pricing of Senior Notes Offering


Chemical and advanced materials maker, Celanese Corporation CE declared that its fully-owned subsidiary, Celanese US Holdings LLC, has priced a public offering of €750 million total principal amount of its 1.125% Senior Notes due 2023.

The notes will be guaranteed on a senior unsecured basis by Celanese and, initially, some of the Issuer’s U.S. subsidiaries.

Celanese plans to utilize the net proceeds from the offering to repay amounts outstanding under its existing senior unsecured revolving credit facility of €367 million (as of Jul 15, 2016). The company plans to use the excess proceeds for general corporate purposes.

The notes will be offered following the company’s existing shelf registration statement filed with the Securities and Exchange Commission (SEC). A prospectus supplement, along with the accompanying prospectus, describing the terms of the offering will be filed with the SEC.



Celanese kept its earnings streak alive with a beat in second-quarter 2016. The company reported adjusted earnings of $1.59 per share in the quarter. The figure was a penny higher than the prior-year quarter tally and above the Zacks Consensus Estimate of $1.55.

Celanese reported quarterly sales of $1,351 million, missing the Zacks Consensus Estimate of $1,418 million. The top line declined roughly 8.5% year over year.

The company noted that recent events have added further uncertainties to economic growth expectations. However, it projects a relatively stable economic landscape across the U.S. and Europe for the rest of 2016. The company’s Materials Solutions unit provides the best package of global presence, product portfolio and applications expertise in the industry, along with a rigorous pipeline process. This enables it to provide value to its customers and in turn, boost earnings.

Celanese, however, is exposed to pricing pressure and is still witnessing soft acetyl demand in China given the sluggish economic conditions. Acetyl intermediates margins are anticipated to remain strained in the near term.

Celanese currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the chemical space include Innophos Holdings Inc. IPHS, Mitsubishi Chemical Holdings Corporation MTLHY and Innospec Inc. IOSP, all sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

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

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.