Published on 11/16/2006 in the Prospect News High Yield Daily.
New Issue: Mosaic prices $950 million eight-, 10-year notes
By Paul A. Harris
St. Louis, Nov. 16 - The Mosaic Co. raised $950 million with the sale of two tranches of senior notes (B1/BB+) on Thursday, according to a market source.
The Plymouth, Minn.-based phosphate and potash crop nutrients producer priced a $475 million tranche of eight-year notes at par to yield 7 3/8%, tight to the 7 3/8% to 7½% price talk.
Meanwhile Mosaic priced a $475 million tranche of 10-year notes at par to yield 7 5/8%, again tight to the price talk: 7 5/8% to 7¾%.
JP Morgan and Merrill Lynch & Co are joint bookrunners. Credit Suisse, Scotia Capital, UBS Investment Bank, ABN Amro, Barclays Capital and Wells Fargo Securities are co-managers.
Proceeds will be used to help fund $1.5 billion of tender offers encompassing Mosaic Global Holdings Inc.'s 6 7/8% debentures due 2007, its 10 7/8% senior notes due 2008, its 11¼% senior notes due 2011 and its 10 7/8% senior notes due 2013. Proceeds will also be used to repurchase Phosphate Acquisition Partners LP's 7% senior notes due 2008.
| Issuer: | Mosaic Co.
|
| Amount: | $950 million
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| Security description: | Senior notes
|
| Bookrunners: | JP Morgan, Merrill Lynch & Co.
|
| Co-managers: | Credit Suisse, Scotia Capital, UBS, ABN Amro, Barclays Capital, Wells Fargo Securities
|
| Trade date: | Nov. 16
|
| Settlement date: | Dec. 1
|
|
|
| Eight-year notes
|
| Amount: | $475 million
|
| Maturity: | Dec. 1, 2014
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 273 bps
|
| Call features: | Callable on Dec. 1, 2010 at 103.688, 101.844, par on and after Dec. 1, 2012
|
| Equity clawback: | Until Dec. 1, 2009 for 35% at 107.375
|
| Price talk: | 7 3/8% to 7½%
|
|
|
| 10-year notes
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| Amount: | $475 million
|
| Maturity: | Dec. 1, 2016
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| Coupon: | 7 5/8%
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| Price: | Par
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| Yield: | 7 5/8%
|
| Spread: | 298 bps
|
| Call features: | Callable on Dec. 1, 2011 at 103.813, 102.542, 101.271, par on and after Dec. 1, 2014
|
| Equity clawback: | Until Dec. 1, 2009 for 35% at 107.625
|
| Price talk: | 7 5/8% to 7¾%
|
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