Vancouver-based methanol supply giant Methanex Corp. (TSX:MX) announced February 21 that it would issue US$250 million in senior unsecured notes with a 10-year maturity and use the proceeds to pay down debt.
Standard & Poor’s Rating Services announced in a release later in the day that the Methanex news would not change its rating as the world’s largest supplier of methanol to major international markets.
Standard & Poor’s said that it expects Methanex to retire its existing US$200 million debt in senior unsecured notes that is due in August. The ratings agency added that it expects Methanex’s debt to decline by about US$55 million on an annual basis as it makes debt payments.
It also expects that the company’s leverage on its debts will shrink.
Methanex’s stock price rose 1.03% to $30.50 on February 21, before it released the news.
@GlenKorstrom
