The Mosaic Co., Tampa, on Aug. 23 announced measures to strengthen and optimize its capital base.
The Board of Directors approved a new $1 billion share repurchase authorization, which replaces the previous authorization that had $700 million of the original $1.5 billion remaining. The company said this new expanded authorization reflects Mosaic’s unchanged commitment to a balanced deployment of excess capital that includes returning capital to shareholders.
In addition, last week the company also completed the previously announced early redemption of $450 million in notes that were due November 2021. The company said this represents the first step toward reaching the company’s goal of retiring $1 billion of debt over time. The company expects to meet the debt retirement goal and execute share repurchases using strong cash flow generated in 2021 and beyond.
Mosaic also increased and extended its committed line of credit. The 5-year, $2.5 billion facility matures in August 2026 and replaces the $2.2 billion line of credit maturing in November of 2022. The company said this increase in size provides additional security and flexibility and reflects the growth in the business.
On Aug. 19, the Board declared a quarterly dividend of $0.075 per share on the company’s common stock. The dividend will be paid on Sept. 16, 2021, to stockholders of record as of the close of business on Sept. 2, 2021.