Published on 11/9/2017 in the Prospect News Investment Grade Daily.
New Issue: Mosaic sells $1.25 billion five-, 10-year senior notes in two parts
By Devika Patel
Knoxville, Tenn., Nov. 9 – The Mosaic Co. priced $1.25 billion of senior notes (Baa3/BBB-/BBB-) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $550 million of 3.25% five-year notes at 99.991 to yield 3.252% with a spread of 125 basis points over Treasuries.
Mosaic priced $700 million of 4.05% 10-year notes at 175 bps over Treasuries. These notes were priced at 99.804 to yield 4.074%.
BNP Paribas Securities Corp., BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, BMO Capital Markets Corp., MUFG, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used for the cash consideration for the company’s planned acquisition of Vale SA's global phosphate and potash operations.
Mosaic is a Plymouth, Minn.-based maker of agricultural chemicals.
| Issuer: | The Mosaic Co.
|
| Amount: | $1.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | BNP Paribas Securities Corp., BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, BMO Capital Markets Corp., MUFG, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Barclays, PNC Capital Markets LLC and Scotia Capital (USA) Inc.
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 13
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Five-year bonds
|
| Amount: | $550 million
|
| Maturity: | Nov. 15, 2022
|
| Coupon: | 3.25%
|
| Price: | 99.991
|
| Yield: | 3.252%
|
| Spread: | Treasuries plus 125 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Oct. 15, 2022 and then a par call
|
|
|
| 10-year bonds
|
| Amount: | $700 million
|
| Maturity: | Nov. 15, 2027
|
| Coupon: | 4.05%
|
| Price: | 99.804
|
| Yield: | 4.074%
|
| Spread: | Treasuries plus 175 bps
|
| Call feature: | Make-whole call at Treasuries plus 30 bps until Aug. 15, 2027 and then a par call
|
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