Two ratings services have given investment-grade ratings to an Airgas Inc. plan to raise $250 million from a debt offering.
The Radnor, Pa., industrial gas supplier said Wednesday it will sell senior notes that mature in October 2013 and use the proceeds to cut its debt.
Moody's Investors Service assigned a "Baa3" rating to the notes, its lowest level investment-grade rating. The service said that rating is under review due to an unsolicited takeover offer made last month by rival Air Products and Chemicals Inc.
Air Products has offered to buy Airgas for about $5 billion in cash and assume $1.9 billion of debt. A combination of the companies would create one of the biggest industrial gas companies in the world.
But the Airgas debt offering "reinforces management's belief that it has sufficient resources to fend off the takeover offer and that it will remain an independent company," Moody's said in a statement.
Standard & Poor's Ratings Services said it assigned a "BBB" senior unsecured debt rating to the Airgas offering. It said Airgas's "BBB" long-term corporate credit rating remains on "CreditWatch with developing implications" due to the Air Products offer.
"BBB" is the second-lowest S&P investment grade rating.
Airgas shares rose 28 cents to $64.82 in Wednesday afternoon trading. Air Products shares fell 5 cents to $74.18.
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