Mosaic obtains upsized $2.72 billion credit facility in two tranches

By Wendy Van Sickle

Columbus, Ohio, Nov. 21 – Mosaic Co. entered into a five-year $2.72 billion unsecured revolving credit and term loan facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.

Specifically, the facility provides for a $2 billion revolving credit facility with $75 million and $150 million sublimits for swingline loans and letters of credit, respectively, and a $720 million term loan facility. The credit facility matures on Nov. 18, 2021.

Wells Fargo Securities, LLC, U.S. Bank NA, Bank of Nova Scotia, MUFJ, BMO Capital Markets Corp., BNP Paribas Securities Corp, JPMorgan Chase Bank, NA and PNC Capital Markets LLC acted as joint lead arrangers and joint bookrunners.

Bank of Nova Scotia, MUFJ, Bank of Montreal, BNP Paribas, JPMorgan Chase Bank, NA and PNC Bank, NA acted as co-documentation agents, with U.S. Bank, NA as syndication agent and Wells Fargo Bank, NA as administrative agent.

Interest ranges from Libor plus 87.5 basis points to Libor plus 150 bps, and the commitment fee from 7 bps to 20 bps, depending on the company’s debt rating.

Mosaic must repay 5% of the term loan balance the first two anniversaries of the effective date, 7.5% on the third anniversary and 10% on the fourth anniversary.

The credit facility amends and restates Mosaic’s prior unsecured credit facility entered into on Dec. 5, 2013 with Wells Fargo as administrative agent.

The revolving credit facility is larger than under the previous facility, and the commitment fees are lower. Also, a maximum ratio of total debt to EBITDA of 3.5 times was eliminated under the new facility, and other covenants are less restrictive than under the previous facility.

The new facility’s covenants include a maximum ratio of consolidated debt to consolidated capitalization of 0.65 times and a minimum interest coverage ratio of 3.5 times.

Proceeds may be used for working capital or other general corporate purposes, including share repurchases, refinancing of existing debt and acquisitions.

Mosaic is a Plymouth, Minn.-based maker of agricultural chemicals.

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