Volume 40, Issue 8 August 2005
PPG Announces Completion of $300 Million Euro International Debt Offering
Pittsburgh-based PPG Industries has announced that it has completed the sale of EUR 300 million of its 3.875 percent senior notes due 2015 (the Euro Notes) in offshore transactions outside the United States in reliance on regulation S under the Securities Act if 1933, amended.
According to PPG, proceeds from the Euro Notes will be used to repay short-term, unsecured commercial paper obligations incurred in connection with the company’s purchase of $275 million in aggregate principal amount of its 6.5 percent notes due November 1, 2007, 7.050 percent notes due August 15, 2009, and 6.875 percent notes due February 15, 2012 pursuant to tender offers that expired on June 17, 2005, and for general corporate purposes. In its announcement PPG said it expects to record a second quarter pre-tax charge of approximately $19 million, or $0.07 per share, in connection with the tender offers.
“The purpose of these transactions is to reduce our annual interest expense, significantly reduce our Euro-denominated net asset exposure and eliminate the majority of our debenture maturities for the next decade,” said William H. Hernandez, senior vice president of finance.
Earlier this year the company had reported first-quarter net income of $95 million, which included after tax charges of $91 million, for the legal settlement in connection with an adverse ruling concerning Marvin Windows and Doors and warranty issues with a wood preservative the company makes. Sales for the quarter were $2.5 billion. Net income adjusted for the nonrecurring legal settlement was $186 million.
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