Royster-Clark tenders for 14% notes

By Angela McDaniels

Seattle, March 7 - Royster-Clark ULC has begun a tender offer for its 14% subordinated notes, according to a company news release.

Royster-Clark will pay C$9.20 per $6.0832 principal amount of notes plus the interest payment that was due April 15.

The tender offer expires at 6 p.m. ET on April 4.

Royster-Clark was acquired by Agrium Inc. on Feb. 9, and the indenture governing the notes requires a tender offer to be made after a change of control.

The offer price is same price parent Agrium offered for the income deposit securities of Royster-Clark and Royster-Clark Ltd. Agrium acquired 98.67% of the securities on Feb. 9 and has since acquired the remainder of the common shares of Royster-Clark Ltd. that formed part of the securities, according to the release.

The tender offer is for all outstanding 14% notes, including notes that formed part of an income deposit security and notes that were issued by Royster-Clark as part of a separate private placement in July 2005.

Royster-Clark is concurrently making an offer to acquire the remaining notes at a price of 101% of the principal amount, which is less than the C$9.20 offer described above.

Royster-Clark is an indirect subsidiary of Agrium, a Calgary, Atla.-based company that produces and markets agricultural nutrients and industrial products.

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