IMC to tender for 7.40% notes due 2002

New York, Dec. 14 - IMC Global Inc. announced a tender offer for its $300 million outstanding 7.40% notes due 2002.

The Lake Forest, Ill. fertilizer company will offer a price determined by a spread of 50 basis points over the yield of the 5.75% Treasury due Oct. 31, 2002 on the 12th business day before the offer expires. The price includes a consent payment of 0.5% of the principal amount of each note for securities tendered before the consent deadline. As part of the tender, IMC is seeking consents to eliminate substantially all the restrictive covenants in the notes.

The pricing date is currently expected to be Dec. 26, 2001 and the consent deadline Dec. 28, 2001.

J.P. Morgan Securities Inc. is dealer manager for the tender offer and consent solicitation. The information agent and depositary is Bondholder Communications Group.

Funds for the offer are coming from the sale of the company's salt business unit and Ogden, Utah evaporation facility. As part of the sale of these operations, $300 million was put in an escrow account to retire the 7.40% notes, IMC said.

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