Create a free Manufacturing.net account to continue

Mosaic Co. sells $750 million in senior notes

Mosaic Co. sold $750 million in senior notes to pay off debt and fund operations going forward now that the fertilizer maker is independent of its former parent company, Cargill Inc.The agribusiness conglomerate spun off its ownership stake in Mosaic in January. Privately held Cargill owned 64...

Mosaic Co. sold $750 million in senior notes to pay off debt and fund operations going forward now that the fertilizer maker is independent of its former parent company, Cargill Inc.

The agribusiness conglomerate spun off its ownership stake in Mosaic in January. Privately held Cargill owned 64 percent of Mosaic, and turned over its share in the company in a deal worth $24.3 billion.

Since then, Mosaic's stock has fallen about 22 percent. It traded above $76.29 in early January and traded around $59.70 on Monday.

Mosaic said the new senior notes it sold were broken into two groups.

The company sold $450 million in notes with a 3.75 interest rate, due in 2021. It sold $300 million in notes at a 4.875 interest rate, due in 2041.

Mosaic said it will earn about $735.1 million from the offering after expenses and underwriting fees. Mosaic plans to use about $505 million of the proceeds to pay down senior notes with 7.625 interest due in 2016 of its subsidiary, MOS Holdings Inc.

It will use the rest of the proceeds for general corporate purposes.

Shares of Mosaic rose 95 cents, or 1.6 percent, to $59.40 Monday.