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Olin’s New $500 Million Debt to Clear Term Loans

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Olin prices its debt offering

On March 6, 2017, Olin (OLN) announced the pricing of its $500.0 million senior notes. It said the notes will be issued at 100.0% par value. They will carry a coupon rate of ~5.1% with a maturity date of September 15, 2027. The interest on this issue will be paid semi-annually on the 15th day of March and September each year through 2027. The first interest payment will be on September 15, 2017.

Net proceeds from the offering are expected to prepay the term loans outstanding under the existing credit facility that are scheduled to mature in 2018.

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Olin’s stock performance for the week

For the week ended March 10, 2017, Olin closed at $31.70 and fell 2.0% for the week. Olin stock was trading 19.2% above its 100-day moving average of $26.59, indicating an upward trend. On a year-to-date basis, Olin has risen 23.8%. Its 14-day RSI (relative strength index) of 60 indicates that the stock is neither overbought nor oversold. An RSI of 70 indicates that a stock is overbought, and a score of 30 suggests that a stock is oversold.

Analysts have given Olin a 12-month target price of $30.30. Currently, the stock is trading above its target price. Olin underperformed the First Trust Dow Jones Global Select Dividend ETF (FGD), which fell 0.60% for the week ended March 10, 2017. FGD invests 1.8% of its holdings in Olin. Some other holdings of the fund include PacWest Bancorp (PACW), HSBC Holdings (HSBC), and CenterPoint Energy (CNP), with weights of 1.6%, 1.5%, and 1.3%, respectively, as of March 10, 2017.

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