albemarle presentation

albemarle presentation - Case Analysis: Heather Keller...

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Case Analysis: Heather Keller David Facey Daniel Levert Natalie Wilson Garrett Ross
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CASE DETAILS Albemarle is a leading global producer of complex chemicals Their products are used as an additive to a wide range of products in numerous industries As of 2010, Albemarle was achieving record earnings and exceptional operating performance as well as strong cash generation They have outstanding debt totaling $766 million They have BBB rated bonds which is considered “good credit quality” At this time, borrowing rates were at a 20-yr low o The current rate is 4.25% o The average rate is 6.11% They fear that interest rates will rise in the future particularly when they refinance their credit facility in 2013 They have no immediate need for cash but should they still issue bonds right now while the rates are at a 20-year low?
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PROS: Albemarle’s debt level will not increase and they will look more attractive to investors The costs of capital will not increase The leverage and coverage
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This note was uploaded on 03/09/2012 for the course FINANCE 3717 taught by Professor Milanshah during the Spring '12 term at LSU.

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albemarle presentation - Case Analysis: Heather Keller...

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