CF Industries plans new long-term secured debt to fund $1 billion call

By Susanna Moon

Chicago, Nov. 3 – CF Industries Holdings, Inc. plans to issue new long-term secured debt to fund the redemption of notes.

CF Industries plans to redeem $1 billion principal amount of CF Industries, Inc.’s senior notes due 2022, 2025 and 2027 and additionally will pay a make-whole premium of about $210 million, according to the company’s earnings release for the third quarter ended Sept. 30.

The company also will fund the notes prepayment using borrowings under the company’s revolving credit facility 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.

The company recently obtained lender consent to amend its revolving credit facility, which requires repayment of the senior notes due 2022, 2025 and 2027.

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

CF Industries is based in Deerfield, Ill., and makes nitrogen products.

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