Airgas Completes 6.25 Pct Senior Notes Redemption

RADNOR, Pa. (AP) — Airgas Inc., a distributor of industrial and specialty gases and welding and safety-related products, said Wednesday it will take charges on the early of redemption of debt in its fiscal second and third quarters.

Airgas said the third-quarter charge is related to the redemption of all its $150 million 6.25 percent senior subordinated notes due July 15, 2014, which it completed at a price of 103.125 percent.

Airgas will record a loss of about $6 million — $4 million, or 5 cents per share, after tax — in the quarter ending Dec. 31 related to the redemption premium and the write-off of unamortized debt issuance costs.

During its fiscal second quarter, Airgas repurchased $58 million of its $400 million 7.125 percent senior subordinated notes due Oct. 1, 2018, at an average price of 102.2 percent.

The company will recognize a loss of about $2 million — $1.3 million, or 2 cents per share, after tax — in its fiscal second quarter ended Sept. 30 related to the redemption premium and the write-off of unamortized debt issuance costs.

Airgas also expects a second-quarter charge of about $1.7 million — $1 million, or a penny per share, after tax — related to withdrawal from a multi-employer pension plan.

These amounts were not included in the company's previously issued second-quarter earnings guidance of 64 cents to 69 cents per share.

Airgas shares rose 72 cents, or 1.5 percent, to $49.12 in midday trading.