CF Industries Holdings Inc. has announced that its wholly owned subsidiary, CF Industries Inc., has priced its previously announced offering of US$1 250 000 000 aggregate principal amount of senior secured notes, comprising $500,000,000 aggregate principal amount of 3.400% senior secured notes due 2021 and US$750 000 000 aggregate principal amount of 4.500% senior secured notes due 2026.
The notes due 2021 will be issued at a price of 99.853% of their face value and the notes due 2026 will be issued at a price of 99.385% of their face value. The closing of the sale of the secured notes is expected to occur on or about November 21, 2016, subject to customary closing conditions. The secured notes will be guaranteed on a senior secured basis, jointly and severally, by CF Industries Holdings, Inc. and its domestic subsidiaries (other than the issuer of the secured notes) that are borrowers or that guarantee obligations under CF Industries’ revolving credit facility.
CF Industries intends to use the net proceeds from the offering of the secured notes, together with cash on hand and/or borrowings under its revolving credit facility, to prepay the US$1.0 billion aggregate principal amount of its senior notes due 2022, 2025 and 2027 and to pay the related make-whole amount and related fees and expenses. The make-whole amount was estimated to be approximately US$210 million based on market interest rates on 31 October 2016. The actual make-whole amount will be determined based on market interest rates on or about 17 November 2016. CF Industries intends to use for general corporate purposes any net proceeds from the offering of the secured notes in excess of the amount required for the senior notes prepayment, including the make-whole amount, and related fees and expenses.
Read the article online at: https://www.worldfertilizer.com/product-news/14112016/cf-industries-announces-pricing-of-senior-secured-notes-offering/
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