CF Industries plans to cut revolving facility by half to $750 million

By Susanna Moon

Chicago, Nov. 3 – CF Industries Holdings, Inc. obtained lender consent to amend its revolving credit facility, which would cut the size in half to $750 million from $1.5 billion.

The amendment also would change and add financial covenants and secure the obligations under the facility with liens on assets of the company and those of its subsidiaries that are borrowers or guarantors under the facility.

The amendment requires the company to repay $1 billion principal amount of CF Industries, Inc.’s senior notes due 2022, 2025 and 2027 in addition to a make-whole amount of about $210 million.

CF Industries expects to fund the notes prepayment using proceeds of a new long-term secured debt issue, borrowings under the company’s revolver and cash.

“Due to the uncertain duration of the current low price environment, the company has made and is making certain changes to parts of its debt capital structure to put in place financing more consistent with the current business and operating environment,” according to the company’s earnings release for the third quarter ended Sept. 30.

As of Sept. 30, the company had a balance of cash and cash equivalents of $1.55 billion and no debt under its revolver.

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