Plymouth, Minn.-The Mosaic Co. said June 9 that two of three credit rating agencies that rate the company’s debt – Fitch Inc., a majority-owned subsidiary of Fimalac, S.A., and Standard and Poor’s Ratings Services, a division of The McGraw-Hill Companies – have upgraded Mosaic’s unsecured debt ratings to investment grade status. Given these actions, said Mosaic, most of the restrictive covenants relating to the company’s 7-3/8 percent senior notes due 2014 and 7-5/8 percent senior notes due 2016 have fallen away. “This is outstanding news for Mosaic,” stated Jim Prokopanko, Mosaic’s President and Chief Executive Officer. “Since Mosaic’s formation in 2004, we have worked relentlessly to generate cash and pay down our debt. Reaching investment grade status is a milestone and will provide Mosaic with access to lower cost funding sources as well as greater flexibility in making financial, investment and operational decisions.” Certain covenants relating to the senior notes will continue to apply. These continuing covenants include limitations on the company’s ability to use assets as security in other transactions, mergers with or into other companies, and sale and leaseback transactions, as well as a requirement that certain subsidiaries guarantee the senior notes. Covenants under the company’s senior secured bank credit facility are not affected by the upgrade of Mosaic’s debt ratings and also continue to apply.
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