Westlake Corp. reported that its cash tender offer for the company’s 3.600% Senior Notes due 2026 closed at 5:00 p.m. New York City time on November 10, 2025. The company will purchase $253.73 million of the notes, excluding those delivered under guaranteed‑delivery procedures, and the total principal amount tendered, including $10.733 million of guaranteed‑delivery notes, reached $264.463 million.
The offer price was $996.32 per $1,000 of principal, a discount of $3.68 to par. Settlement of the tender offer is expected on or about November 12, 2025, while notes delivered under guaranteed‑delivery procedures are expected to settle around November 14, 2025. The tender represents roughly 34% of the $750 million of 2026 notes that were outstanding before the offer.
Westlake’s decision to repurchase a substantial portion of its 2026 notes is part of a broader debt‑management strategy that also includes a $1.2 billion senior unsecured notes offering. By buying back the notes at a discount, the company reduces its overall debt burden and is positioned to lower future interest expense, improving its balance‑sheet strength. The move also frees up cash that can be deployed toward operational initiatives or other strategic priorities.
The company’s financial performance in the third quarter of 2025 was challenging, with a net loss of $38 million ($0.29 per share) on net sales of $2.8 billion. A $727 million non‑cash impairment charge related to the North American chlorovinyls business contributed heavily to the loss. Despite the loss, Westlake’s total debt stood at $5.4 billion, with a debt‑to‑equity ratio of 46.9% and a leverage ratio of 0.54, indicating moderate leverage. The tender offer helps to mitigate the impact of the impairment by reducing the amount of debt that will accrue interest in the coming years.
Westlake operates through two main segments: Performance and Essential Materials (PEM) and Housing and Infrastructure Products (HIP). In Q3 2025, the PEM segment experienced a decline in average sales price and volume, while the HIP segment saw a decrease in operating income. CEO Gilson noted that the company’s actions, including the tender offer, “will contribute to margins and earnings next year and for years to come,” underscoring management’s focus on improving profitability across both segments.
The tender offer is viewed by market participants as a prudent step toward debt reduction, but it comes amid a backdrop of operational headwinds and a significant impairment charge. Analysts have expressed mixed views, with some upgrading the company’s outlook while others have lowered price targets, reflecting concerns about commodity platform challenges and a delayed housing market recovery.
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