Mosaic receives consents for nine of 10 series of bonds, extends solicitation for 7 5/8% notes

New York, Jan. 4 - The Mosaic Co. said it received the necessary consents to amend the indenture for nine of the 10 series of bonds covered by its solicitation.

It added that it has extended the deadline for the remaining issue, the 7 5/8% notes due 2005, to 5 p.m. ET on Jan. 5 from 5 p.m. ET on Jan. 3.

The nine series for which approvals were received total $1.786 billion principal amount. There is $27 million of the 7 5/8% notes outstanding.

At its previous announcement on Dec. 15, Mosaic said that two of its wholly owned subsidiaries have increased the payment on offer in their solicitations of consents from noteholders to proposed indenture changes.

In addition, the deadline was extended to 5 p.m. ET on Jan. 3 from 5 p.m. ET on Dec. 16.

Mosaic Global Holdings Inc. - formerly IMC Global Inc. - is now offering a fee of $14.50 per $1,000 principal amount to holders of its 10 7/8% senior notes due 2008 and 10 7/8% senior notes due 2013 and a fee of $8.50 per $1,000 principal amount to holders of its 11¼% senior notes due 2011.

In addition, holders of any series of notes who deliver consents by the consent deadline will also receive an early consent premium of $1.50 per $1,000 principal amount.

Previously the consent fee was $1 per $1,000 principal amount for all series of notes plus a possible $1.50 early consent premium.

Other terms of the offer are unchanged.

Mosaic, a Minnetonka, Minn.-based producer of agricultural chemicals, said on Nov. 17 that its Mosaic Global subsidiary - formerly IMC Global Inc. - and another subsidiary, Phosphate Acquisition Partners LP - the successor to Phosphate Resource Partners LP - had begun soliciting consents from holders of their roughly $1.8 billion of outstanding public debt securities to proposed indenture changes. The amendments relate to the recently completed combination of the former IMC with the Crop Nutrition businesses of Cargill Inc., which formed Mosaic. The company said that the proposed amendments are primarily to provide Mosaic with the greater operational flexibility to more effectively integrate the businesses of IMC and the Crop Nutrition businesses.

IMC and Phosphate Acquisition Partners initially set an early consent deadline of 5 p.m. ET on Dec. 1, which was later three times extended, and an expiration deadline for the solicitation of 5 p.m. ET on Dec. 16, subject to possible extension.

Mosaic said that in return for the consents, itself and two of its other wholly owned subsidiaries, Mosaic Fertilizer LLC and Mosaic Crop Nutrition LLC, are offering guarantees of the obligations of IMC and Phosphate LP.

Goldman, Sachs & Co. is the solicitation agent for the consent solicitation (call the Liability Management Group at 800 828-3182) while Bondholder Communications Group is the information agent (call Irene Miller at 888 385-BOND/888 385-2663).

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