Plymouth, Minn.-The Mosaic Company said Sept. 25 that it is notifying the lenders under its senior secured bank credit facility of its election to prepay $300 million principal amount of term loans under the facility on Sept. 28, 2007. With this payment, Mosaic will have prepaid $700 million in the past five months. The prepayments will consist of $112.8 million principal amount of term loan A-1 borrowings and $174.3 million principal amount of term loan B borrowings by Mosaic, and $12.9 million principal amount of term loan A borrowings by its subsidiary, Mosaic Potash Colonsay ULC. After the prepayments, outstanding term loans under the facility will be reduced to $15.1 million principal amount of term loan A borrowings, $132.0 million principal amount of term loan A-1 borrowings, and $203.9 million principal amount of term loan B borrowings. The prepayments are being made from available cash generated by the ongoing business operations of Mosaic and its subsidiaries. Mosaic considers the prepayments to be a significant step in its plan to reduce outstanding borrowings, strengthen its balance sheet, and achieve investment grade credit ratings.
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