Methanex Prices Offering Of $700M Senior Notes Due 2029
Zacks Investment Research | Sep 10, 2019 10:04PM ET
Methanex Corporation (NASDAQ:MEOH) recently announced that it has priced an offering of senior unsecured notes.
The company will issue $700 million in total principal amount of 5.25% senior notes due Dec 15, 2029. Per Methanex, the notes will be issued at a price of 99.969% of the total principal amount. Also, the notes will have an effective yield to maturity of 5.255%. Methanex expects the offering to close on or about Sep 12, 2019, which is subject to customary closing conditions.
Methanex is expected to utilize the net proceeds from the offering mainly for one or more of debt repayments. This includes repayment of its existing 3.25% unsecured notes due on Dec 15, 2019, of which $350 million in total principal amount is outstanding.
It also plans to use the proceeds as capital expenditures related to plant construction and maintenance, including pre-funding of nearly $250 million for the construction of Geismar 3 plant as well as working capital or other general corporate purposes.
Shares of Methanex have plunged 50% in the past year compared with the Original post
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