Mosaic issues US$2B in bonds, including US$900M of 4.25% 10-year securities, US$500M of 5.45% bonds due 2033, US$600M of 5.625% 30-year obligations, data shows; restrictions on when company can buy back shares, issue dividends to end later this month

Allison Oesterle

NEW YORK , November 7, 2013 (Bloomberg LP) – Mosaic Co. issued $2 billion of bonds in three parts as a restriction on when the largest U.S. producer of potash and phosphate fertilizer can buy back shares or issue dividends ends later this month.

The company sold $900 million of 4.25 percent, 10-year securities to yield 168 basis points more than similar-maturity Treasuries, $500 million of 5.45 percent bonds due 2033 that pay 173 basis points more than benchmarks and $600 million of 5.625 percent, 30-year obligations at a spread of 188 basis points, according to data compiled by Bloomberg. The securities are rated Baa1 by Moody’s Investors Service.

Proceeds will be used for general corporate purposes, including capital expenditures, share buybacks or dividend increases, the Plymouth, Minnesota-based company said today in a regulatory filing. IMC Global Inc. and the fertilizer division of Cargill Inc. formed the company in 2004 and as part of the merger Mosaic has been restricted from share buybacks until Nov. 26, according to the filing.

Mosaic last sold bonds in October 2011, issuing $450 million of 3.75 percent notes due in 2021 and $300 million of 4.875 percent securities maturing in 2041, according to data compiled by Bloomberg. The 2021 notes traded at 98.8 cents on the dollar to yield 3.93 percent Oct. 31, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

--Editors: John Parry, Alan Goldstein

To contact the reporter on this story: Matt Robinson in New York at mrobinson55@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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