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Mosaic borrows full $800 million under term loans due 2017, 2019
By Marisa Wong
Madison, Wis., Sept. 24 – Mosaic Co. borrowed the entire amount available under its term loan facility on Sept. 18, according to an 8-K filing with the Securities and Exchange Commission.
The term loan facility, entered into on March 20, 2014, allows the company to, on up to two occasions, borrow on a pro rata basis up to $370 million of term A-1 loans and up to $430 million of term A-2 loans until Sept. 19.
U.S. Bank NA is the syndication agent and Wells Fargo Bank, NA is the administrative agent for the facility.
Final maturity of the term A-1 loans is Sept. 18, 2017, and final maturity of the term A-2 loans is Sept. 18, 2019.
Mosaic is required to repay 5% of the term A-1 loan balance on each of Sept. 18, 2015 and 2016 and 5% of the term A-2 loan balance on each of Sept. 18, 2015 and 2016, 7.5% on Sept. 18, 2017 and 10% on Sept. 18, 2018.
Mosaic may prepay outstanding term A-1 and term A-2 loans at any time and from time to time, without premium or penalty.
The interest rate is Libor plus 112.5 basis points.
Borrowings under the term loan will be used to replace a portion of the cash that Mosaic used to fund its March 17, 2014 purchase of the Florida phosphate assets and assumption of related liabilities of CF Industries, Inc.
Proceeds may also be used for working capital, capital expenditures, dividends, share repurchases and other acquisitions.
The term loan facility has some cross-default provisions and also requires the company to maintain some financial ratios, including a maximum ratio of total debt to EBITDA of 3.5 to 1.0, as well as a minimum interest coverage ratio of not less than 3.0 to 1.0.
Mosaic is a Plymouth, Minn.-based maker of agricultural chemicals.
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