Airgas announces redemption of senior notes
Airgas, Inc. today announced it has elected to redeem all $215m of its remaining outstanding 7.125% Senior Subordinated Notes maturing in October 2018. The notes will be redeemed in full on October 2, 2013, at a price of 103.563%.
The company intends to finance the redemption of the notes with the proceeds of commercial paper issuances. A loss on the early extinguishment of debt of approximately $9m (approximately $6m after tax, or approximately $0.08 per diluted share) will be recognised related to the redemption premium and the write-off of unamortised debt issuance costs. The loss will be reflected in the fiscal third quarter ending December 31, 2013.
The company’s previously issued fiscal 2014 earnings per diluted share guidance range reflected the impact on interest expense in the second half of the year from the potential full redemption of the 7.125% notes utilising proceeds of commercial paper issuances, which carry substantially lower interest rates, and excluded the loss on the early extinguishment of debt, which the company has historically deemed to be a special charge.