Kassel, Germany — German fertilizer company K+S AG on June 12 launched a corporate bond with a volume of €500 million and a maturity of ten years. With an interest coupon of 3 percent and an issue price of 99.422 percent, the yield is 3.068 percent. K+S said the proceeds will be used to refinance the outstanding corporate bond maturing in 2014, which, along with available liquidity and future cash flows, will serve to finance the Legacy Project in Canada and general corporate purposes. “The rapid and successful placing of the ten-year bond shows the capital market’s confidence in the sustainable earnings capacity of the K+S Group,” said Norbert Steiner, chairman of the K+S board of executive directors. “The issuance of the bond with a maturity up to 2022 optimizes our maturity profile, makes use of the capital market environment which is currently favorable for issuing investment-grade corporate bonds, and guarantees long-term financing security on extremely attractive terms.” Banco Santander, Barclays Bank, HSBC Bank, and Landesbank Baden-Württemberg served as joint managers and bookrunners for the transaction.
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