OCI NV, Amsterdam, on Oct. 7 announced the launch of an offering of $1.1 billion (equivalent) of Senior Secured Notes. They will be denominated in USD and EUR. The Notes will be senior secured obligations of the company and will be guaranteed by certain of the company’s subsidiaries. Interest will be payable semi-annually. The interest rate, offering price and principal amount of each series of the Notes along with certain other terms will be determined at the time of pricing of the offering, subject to market conditions.

The net proceeds of the offering will be used to repay certain existing indebtedness of the group and pay related fees and expenses. The refinancing aims to continue the company’s strategy of optimizing its capital structure which it launched in 2017, including refinancing debt at various subsidiaries and moving towards a robust financing structure at the holding company level, as the company says it has reached the end of its capex program and individual projects have reached or are on the verge of reaching full production.

In other news, OCI said that based on current information available to management, that total sales volumes for the two months ended Aug. 31, 2019 are in line with management expectations and increased by approximately 7 percent compared to the two year-ago months. However, the increases were mainly due to increased methanol and DEF production, with nitrogen fertilizer volumes down due to major turnarounds. Increases in sales volumes were primarily driven by (i) the ramp-up of new Natgasoline methanol capacity, which was fully reflected in July volumes; (ii) a doubling of DEF sales volumes; and (iii) the start-up of BioMCN’s second methanol line during the third quarter, as well reflecting full production from BioMCN’s first line, which was down for a planned turnaround during third-quarter 2018.

OCI believes nitrogen sales volumes were lower than could have otherwise been achieved (i) due to scheduled turnarounds at a number of its facilities (Iowa Fertilizer Co., Sorfert, EFC and OCI Nitrogen), which management planned to coincide with the usual seasonal demand slowdown, and (ii) an unplanned shutdown at Natgasoline starting in August due to an isolated event related to the waste heat boiler that is currently being resolved.

CF Industries Holdings Inc., Deerfield, Ill., said Oct. 9 that its Board of Directors has maintained a $0.30 per share dividend on its common stock. The dividend will be payable on Nov. 29, 2019 to stockholders of record as of Nov. 15, 2019.

In addition, CF said its wholly-owned subsidiary, CF Industries Inc., has elected to redeem in full all of the $500 million outstanding principal amount of its 7.125 percent Senior Notes due May 2020, in accordance with the optional redemption provisions provided in the indenture governing the Notes. The Notes will be redeemed on Nov. 13, 2019. CF intends to use cash on hand to fund the redemption.

Global chemical and ingredients distributor Univar Solutions Inc., Downers Grove, Ill., reported late last month that investment group Clayton, Dubilier & Rice (CD&R), New York City, has sold its 11,594,268 shares of 6.9 percent of Univar common stock to Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC, as the underwriters in the registered public offering of those shares. Goldman and J.P. Morgan propose initially to offer the shares to the public at a fixed price. CD&R will receive all net proceeds from this offering. No shares are being sold by Univar. Following the offering, it is expected that CD&R will no longer hold any shares of Univar common stock.

Due to CD&R’s exit from stock ownership, Univar announced that CD&R’s representative on the Board of Directors David H. Wasserman has tendered his resignation. He has been on the Board for nine years and with CD&R for 21 years. Univar praised his perspective and service, especially as the company emerged from its initial public offering in 2015.

The Board will not replace Wasserman and instead will reduce its size to 12 directors, effective Oct. 31, 2019.

The controlling shareholder in Biriu Kroviniu Terminalas (Bulk Cargo Terminal [BKT]) in the Lithuanian port of Klaipeda is looking to complete a planned deal which would allow BKT to buy shares in an adjacent terminal in the port, Nemuno Terminalas, in order to boost shipments of Belarus’ potash exports via the port.

According to a report by The Baltic Times, Lithuanian businessman Igor Udovickij, who owns a 70 percent stake in BKT and co-owns with other family members 100 percent of the shares in Nemuno Terminalas, wants to create a single terminal complex and build additional warehouses to receive increasing volumes of product from Belaruskali. The Belarus potash producer owns a 30 percent stake in BKT, and the new terminal complex would be operated under the BKT corporate umbrella.

Lithuania’s Cabinet is reported to have allowed the deal to go ahead, but the deal still needs approval from the country’s Competition Council.

Belaruskali plans to increase its potash exports via BKT from the current 12 million mt/y to some 16 million mt/y by 2024-2025, according to the report, citing Udovickij.

The Belarus producer currently is developing new production capacity, including the new 1.5 million mt/y Petrikov mine and potash plant in Belarus’ Gomel region, which is targeted to start test production in December and the Darasinsky potash mine, which is expected to have initial capacity of 8 million mt/y of ore and where construction began in May (GM Sept. 6, p. 26; May 24, p. 30).

Russian-back Slavkaliy Co.’s Nezhinsky 2 million mt/y potash mine and processing plant also is currently expected to produce its first tons in 2023 (GM July 12, p. 1). Belaruskali’s potash exports are all handled by Belarus Potash Co. (BPC). BPC is also reported to have a “partially formalized agreement” with Slavkaliy Co. to sell Nezhinsky potash (GM Sept. 6, p. 26).

Udovickij has warned that if the deal doesn’t go ahead, Belaruskali’s additional potash volumes will be diverted to other ports.

Belarus earlier this year was reported to be assessing certain Latvian ports and terminals, including AS Kālija Parks in Ventspils and Riga’s Alpha Osta terminal, for potentially handling some of the country’s potash export shipments (GM April 12, p. 27). Belarus’ authorities have also indicated they “are ready” to set up a hub for the import and transshipment of Belarus potash and nitrogen fertilizers in Russia’s Kursk Oblast (GM June 14, p. 30).

Uralkali, Moscow, plans to increase potash production capacity to 15 million mt/y by 2025 through new projects as well as expansion and modernization of existing capacity, Bloomberg reported, citing the potash company’s prospectus for its first Eurobond since 2013.

If Uralkali takes the decision to undertake the second stage of its Polovodovo greenfield mine and processing plant project by 2023, the company’s annual production capacity could increase to 17.8 million mt by 2030.

The producer provided updates on some of its major projects under development at the end of August, as part of its first-half 2019 financial results report (GM Aug. 30, p. 26). At the Polovodovo mine, the company reported preparatory measures required for shaft sinking were starting to be implemented. Polovodovo is expected to have a full design capacity of 2.8 million mt/y.

At the new Solikamsk-2 mine in Russia’s Perm region, the company reported it was proceeding with shaft design and shaft-sinking measures. Solikamsk-2 will have design capacity of 2.3 million mt/y of potassium chloride.

Uralkali back in early June said production should start at Solikamsk-2 in 2024 and at the Polovodovo complex in 2027 (GM June 7, p. 27).

At the end of August, the producer said work was underway on the ground-level complex construction at the new Ust-Yayva mine under construction, as well as the design for an underground operation (GM Aug. 30, p. 26). Ust-Yayva’s planned design capacity is 2.8 million mt/y of potassium chloride.

The company also said construction of the ground-level complex continues for the expansion of Solikamsk-3 (GM Aug. 30, p.26).

Uralkali’s plans for the ramp-up of production as new capacity comes on stream remain unclear, however. Back in late May, there were reports the company would delay big project ramp-ups (GM May 31, p. 27).

The producer last month announced plans to cut its potash output in the second half of this year on account of current market conditions and scheduled maintenance (GM Sept. 20, p.1). It said it expected to reduce total output by approximately 350,000-500,000 mt. The company saw a 3 percent year-on-year fall in its potash output in the first half of 2019, to 5.7 million mt, and an 8 percent decline in sales volume to 5.4 million mt of KCl.

The company said in its first-half 2019 financial results report, that despite the declining demand for potash in 2019 in some major regions, it is optimistic on potash industry fundamentals.

It said in the Eurobond prospectus that its total capital expenditure could reach about $3 billion in 2020-2025, which is in line with earlier capex estimates by the company (GM May 31, p. 27). Separately, Uralkali Senior Independent Director Paul Ostling, told investors the company’s capex would reach $550 million this year and may reach $670 million in 2020, according to an Interfax report.

The company is planning a roadshow for a reported five-year loan participation notes offering, subject to market conditions, according to a Bloomberg report, citing unidentified people familiar with the offerings.

Acron Group, Moscow, said this week it had shipped its first batch of fertilizers – some 23,000 mt – to China through the Northeast Passage (NEP). It said it is the first company in the world to deliver fertilizers through the NEP. The 23,000 mt cargo was loaded at the Russian Baltic Sea port of Ust-Luga and was shipped across the Northern Sea route.

Acron Vice President Overseas Dmitry Khabrat said this new sales route will reduce transportation costs and open new opportunities for delivering the group’s products to Asia Pacific, by significantly shortening the freight transit time.