The transaction involves the offering by the Iowa Finance Authority of up to approximately US$854 million Midwestern Disaster Area Revenue Refunding Bonds (Iowa Fertilizer Company Project), Series 2022 (the “Series 2022 Bonds”), the proceeds of which will be loaned to IFCo to refinance, together with OCI's available resources, the Iowa Finance Authority Midwestern Disaster Area Revenue Bonds (Iowa Fertilizer Company Project), Series 2013 and Series 2018A and B (collectively, the “Prior Bonds”).
The Prior Bonds constitute a portion of the bonds issued to finance or refinance a portion of the costs of the acquisition of land and the development, construction, equipping and furnishing of OCI’s nitrogen fertilizer plant and certain infrastructure improvements, including improvements to the surrounding roadways, sewage system extension and other improvements, in Lee County, Iowa.
The Series 2022 Bonds are expected to be issued pursuant to an Indenture by and between the Iowa Finance Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"). Interest on the Series 2022 Bonds will be exempt from US federal income tax and will be non-AMT. The payment obligations of IFCo with respect to the Series 2022 Bonds will be guaranteed by OCI pursuant to a Guaranty Agreement made by OCI and certain other subsidiaries of the Company in favor of the Trustee. Citigroup will serve as bookrunning underwriter for the Series 2022 Bonds, with BofA Securities and JP Morgan serving as co-senior underwriters and Barclays, Goldman Sachs and Morgan Stanley serving as co-managing underwriters.
The Series 2022 Bonds have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), and have not been and will not be qualified under the securities laws of any state. The Series 2022 Bonds have not been recommended by any federal or state securities commission or regulatory commission.
Separately, OCI closed a new unsecured multicurrency 5-year Revolving Credit Facility (RCF) for a total of US$1.1 billion, which will replace a previously undrawn facility of US$850 million, originally entered into in 2018.