By Andrea Heisinger
New York, Sept. 23 - Potash Corp. of Saskatchewan Inc. priced $1 billion of senior unsecured notes (Baa1/A-/) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The $500 million of 3.75% six-year notes priced at 99.452 to yield 3.853%, or Treasuries plus 140 basis points.
A $500 million tranche of 4.875% notes due March 30, 2020 priced at 99.109 to yield 4.985% with a spread of Treasuries plus 150 bps.
Each tranche features a make-whole call at Treasuries plus 25 bps and a change-of-control put of 101%.
Bookrunners were Bank of America Merrill Lynch, HSBC Securities and RBC Capital Markets.
Co-managers were Scotia Capital, BMO Capital Markets, CIBC World Markets, Rabo Securities, TD Securities, UBS Securities, Mitsubishi UFJ Securities, SG Americas Securities, Comerica Securities, Goldman Sachs & Co. and Morgan Stanley & Co.
Proceeds will be used to repay debt outstanding under a $1.85 billion revolving credit facility due May 28, 2010, a $750 million revolver due May 31, 2013 and a $180 million revolver due Dec. 21, 2010. Any remainder will be used for general corporate purposes.
The fertilizer, industrial and feed products maker is based in Saskatoon, Sask.
| Issuer: | Potash Corp. of Saskatchewan Inc.
|
| Issue: | Senior unsecured notes
|
| Total amount: | $1 billion
|
| Bookrunners: | Bank of America Merrill Lynch, HSBC Securities, RBC Capital Markets
|
| Co-managers: | Scotia Capital, BMO Capital Markets, CIBC World Markets, Rabo Securities, TD Securities, UBS Securities, Mitsubishi UFJ Securities, SG Americas Securities, Comerica Securities, Goldman Sachs & Co., Morgan Stanley & Co.
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 23
|
| Settlement date: | Sept. 28
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
|
|
| Six-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 30, 2015
|
| Coupon: | 3.75%
|
| Price: | 99.452
|
| Yield: | 3.853%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| Notes due 2020
|
| Amount: | $500 million
|
| Maturity: | March 30, 2020
|
| Coupon: | 4.875%
|
| Price: | 99.109
|
| Yield: | 4.985%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
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