Celanese Corp secures $1.8 billion in senior notes offerings

Celanese Corporation, a global chemical and specialty materials company with a market capitalization of $6 billion, has entered into underwriting agreements for the issuance of senior notes totaling $1.8 billion. The agreements, dated March 6, 2025, were made with J.P. Morgan Securities LLC and J.P. Morgan Securities plc as the representatives of the respective underwriters. According to InvestingPro data, the company’s financial health score is rated as "FAIR," with analysts expecting a return to profitability this year.

The Irving, Texas-based company, which trades on the New York Stock Exchange under the ticker (NYSE:CE), announced the offering of $700 million in 6.500% Senior Notes due 2030 and $1.1 billion in 6.750% Senior Notes due 2033, collectively known as the USD Notes. Additionally, Celanese will offer €750 million in 5.000% Senior Notes due 2031, referred to as the Euro Notes. The company’s total debt stood at nearly $13 billion as of the last quarter, with a debt-to-equity ratio of 2.5x.

The offering of these notes has been registered under the Securities Act of 1933, as per a Registration Statement filed on March 31, 2023. The USD Notes and Euro Notes are being offered via a Prospectus Supplement dated March 5, 2025, and a Free Writing Prospectus filed on March 6, 2025.

Celanese’s strategic move to secure this financing aligns with its ongoing efforts to strengthen its financial position and support its business operations. The company, with its principal executive offices in Irving, TX, is known for its production of plastic materials, synthetic resin, and rubber cellulose, serving a diverse range of industrial applications. With annual revenue of $10.3 billion and an EBITDA of $1.8 billion, InvestingPro analysis indicates the company currently appears undervalued based on its Fair Value assessment.

The financial details of the transactions are disclosed in the company’s latest 8-K filing with the Securities and Exchange Commission. This filing provides investors and the public with verifiable facts about the company’s entry into a material definitive agreement and financial statements.

The underwriting agreements include the sale of the notes by Celanese US Holdings LLC, a wholly-owned subsidiary, and the participation of several subsidiary guarantors. The funds raised through these offerings are expected to contribute to Celanese’s long-term financial strategy and provide the company with additional capital for its operations and potential growth initiatives.

Investors and stakeholders in the chemical and specialty materials sector may view this development as an indicator of Celanese’s financial management and its approach to capital markets. The completion of these offerings will likely be followed closely by market analysts and investors alike, as Celanese continues to navigate the competitive landscape of the global chemicals industry. Despite recent challenges, including a 64% decline in stock price over the past year, InvestingPro data reveals multiple positive indicators, including expected net income growth and strong free cash flow yield. For deeper insights into Celanese’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Celanese Corporation has seen a series of adjustments from financial analysts following its latest earnings reports and forecasts. Piper Sandler has lowered its price target for Celanese stock to $50, maintaining an Underweight rating, citing significant challenges the company faces in regaining financial stability. BofA Securities also reduced its price target from $88 to $72 but kept a Buy rating, suggesting that earnings might improve after a low point in early 2025. UBS decreased its target to $60 and retained a Neutral rating, noting a slower-than-expected recovery in earnings and increased leverage concerns.

RBC Capital Markets downgraded Celanese from Outperform to Sector Perform, setting a new price target at $56 due to the company’s exposure to the automotive sector and challenges from its recent acquisition. Meanwhile, BMO Capital Markets cut its target to $46, maintaining an Underperform rating, highlighting macroeconomic headwinds and excess capacity concerns. These developments indicate a cautious outlook from analysts, who are closely monitoring Celanese’s strategic moves, including management changes and cost-saving measures, to navigate current market conditions.

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