| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Mosaic Co. > News item |
Mosaic enters into $800 million term loan facilities with Wells Fargo
By Jennifer Chiou
New York, March 25 - Mosaic Co. entered into on March 20 an unsecured term loan facility with Wells Fargo Bank, NA as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.
U.S. Bank NA is the syndication agent.
Under the facility, the company may borrow on up to two occasions up to $370 million under term A-1 loans and up to $430 million under term A-2 loans.
The lenders' commitments expire on the earlier of Sept. 19 and full funding of the loans or earlier termination.
The filing noted that Mosaic is required to repay 5% of the term A-1 loan balance on each of the first two anniversaries of the commitment termination date and 5% of the term A-2 loan balance on each of the first two anniversaries, 7.5% on the third anniversary and 10% on the fourth anniversary of the commitment termination date.
The 8-K said there is a ticking fee that accrues at an annual rate of 0.0125% on the aggregate undrawn commitments beginning on April 19. There is no prepayment penalty.
Proceeds will be used to replace cash that Mosaic used to fund its purchase of Florida phosphate assets and the assumption of certain related liabilities of CF Industries, Inc. for $1.2 billion plus an additional $200 million to fund CF's asset retirement obligation escrow. Proceeds may also go towards working capital.
Mosaic is required to maintain certain 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.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.