CF Industries, Inc., a subsidiary of
CF Industries Holdings, Inc.
), has announced the pricing of senior notes worth $1.5 billion.
The offering comprised $750 million aggregate
principal amount of 3.45% senior notes due 2023 and $750 million
aggregate principal amount of 4.95% senior notes due 2043. The
notes will be guaranteed by CF Industries Holdings, Inc.
The net proceeds from the issuance of senior notes will be
utilized to fund CF Industries' capacity expansion projects,
working capital and for other general corporate purposes,
including stock repurchases. Depending on customary closing
conditions, the offering is expected to close on May 23, 2013.
Morgan Stanley & Co. LLC and Goldman, Sachs & Co., a unit
The Goldman Sachs Group, Inc.
), respectively, are acting as joint book-running managers for
the senior notes offering. RBC Capital Markets, LLC and CIBC
World Markets Corp. are acting as co-managers for the senior
notes offering. BMO Capital Markets Corp., U.S. Bancorp
Investments, Inc. and Wells Fargo Securities, LLC, a unit of
Wells Fargo & Company
), are acting as senior co-managers.
CF Industries came out with its first-quarter 2013 results on
May 8. The company reported adjusted earnings (excluding one-time
items) of $6.03 per share, which were below the year-ago earnings
of $6.06 but exceeded the Zacks Consensus Estimate of $6.00.
After including one-time items, the company earned $6.47 a share
in the quarter, up 16.8% from $5.54 in the year-ago quarter.
Sales were down 12.5% to $1.34 billion in the quarter from
$1.53 billion in the prior-year quarter. It also missed the Zacks
Consensus Estimate of $1.45 billion. The decrease reflected lower
sales volumes in both the Nitrogen and Phosphate divisions and
lower average prices for urea and phosphates. Sales also declined
due to the impact of a change in the selling price calculation
method used for products sold by Canadian Fertilizers Limited
CF Industries remains positive regarding second-quarter 2013
based on higher prices for grains which will provide farmers with
incentives to plant corn and apply both nitrogen and phosphate.
Low domestic and global grain stocks are anticipated to boost
plantings for the next several years.
The company expects capital expenditures for its announced
capacity expansion projects at Donaldsonville, La., and Port
Neal, Iowa, to be in the range of $600-$800 million in 2013.
Capital expenditures for the company's existing facilities are
anticipated to be about $450 million.
CF Industries currently retains a short-term Zacks Rank #3
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