Home breadcru News breadcru Company breadcru Westlake files preliminary prospectus supplement with SEC

Westlake files preliminary prospectus supplement with SEC

20 Apr '06
3 min read

Houston, Texas based chemical producer Westlake Chemical Corporation announced that it is filing a preliminary prospectus supplement with the Securities and Exchange Commission relating to a proposed public offering by TTWF LP, its controlling stockholder, of 5.5 million shares of the Company's currently outstanding common stock.

The offering will be made through underwriters led by JPMorgan, Credit Suisse, and Deutsche Bank Securities. TTWF will grant the underwriters an option to purchase up to 825,000 shares from TTWF to cover over-allotments, if any. TTWF will receive all the proceeds from the sale of the stock, including any over-allotment shares.

The Company has stated in the preliminary prospectus supplement that, while it has not finally determined its results of operations for the quarter ended March 31, 2006, it expects its fully diluted earnings for that quarter to be in the range of from $0.75 to $0.78 per diluted share, which includes the negative effect of debt retirement costs of $0.25 per diluted share.

The Company accordingly expects fully diluted earnings, excluding the effect of the debt retirement costs, to be in the range of from $1.00 to $1.03 per diluted share. This compares to $0.94 per diluted share for the first quarter of 2005 and $1.13 per diluted share for the fourth quarter of 2005.

The favorable first quarter 2006 results, when compared to the first quarter of 2005, are attributable primarily to higher margins for the Company's products, partially offset by lower production volumes in some products.

Get Free Weekly Market Insights Newsletter

Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!