Deerfield, Ill.-CF Industries Holdings Inc. said April 20 that its subsidiary, CF Industries Inc., has successfully priced a $1.6 billion public offering of senior notes (GM April 19, p. 1). The offer comprises $800 million aggregate principal amount of 6.875 percent senior notes due 2018 at an issue price of 100 percent of the principal amount of such notes, and $800 million aggregate principal amount of 7.125 percent senior notes due 2020 at an issue price of 100 percent of the principal amount of such notes. CF Industries will pay interest on the notes semi-annually on May 1 and Nov. 1 of each year, beginning Nov. 1, 2010. The senior notes will be guaranteed by CF Industries Holdings, Inc., and certain of its subsidiaries. CF Industries intends to use the net proceeds from the offering of senior notes to repay outstanding borrowings under its $1.75 billion senior secured bridge facility, and, to the extent of any net proceeds in excess of the amount required to fully repay borrowings under the senior secured bridge facility, to repay outstanding borrowings under its $2.0 billion senior secured term loan facility. The senior secured bridge facility and senior secured term loan facility were used to fund cash requirements relating to CF’s acquisition of Terra Industries Inc. The senior notes offering was expected to close on April 23, 2010.
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