Moody's rates Mosaic loan Ba2, ups other units

Moody's Investors Service said it assigned a Ba2 rating to the $850 million of guaranteed senior secured credit facilities of The Mosaic Co.

The senior credit facilities consist of a $50 million five-year term loan A, a $400 million seven-year term loan B, and a $400 million five-year revolving facility. The credit facilities are guaranteed by substantially all domestic subsidiaries.

Moody's also upgraded Mosaic Global Holdings Inc.'s guaranteed senior unsecured notes to Ba3 from B1, senior unsecured notes and debentures to B1 from B2, and existing guaranteed senior secured credit facility to Ba2 from Ba3. The facility will be withdrawn at the completion of the new financing. Moody's also upgraded the company's mandatory convertible preferred shares to B3 from Caa1.

Also, Moody's upgraded Phosphate Resource Partners LP's 7% senior unsecured notes due 2008 to Ba3 from Caa1.

The credit facilities are being used to fund a restructuring of Mosaic's existing bank facilities and thus support the recent merger between Mosaic Global Holdings Inc. and Cargill Crop Nutrition. Mosaic was assigned a Ba3 senior implied rating.

Moody's said it views the merger as positively impacting Mosaic's ability to service its debt.

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