CF Industries Holdings, Inc. (NYSE:CF) reported that its subsidiary unit CF Industries, Inc. has started a tender offer to buy for cash up to $200 million aggregate principal amount of company’s 7.125% Senior Notes payable in 2020. The company plans to fund the buying of the “Notes” in the tender offer with available cash. This tender offer is being planned upon, and is contingent to, the guidelines set forth in the purchase offer, dated December 11, 2017, and the associated letter of transmittal.
Tony Will, the CEO and President of CF Industries, stated that this tender offer is the subsequent step in their commitment to lower leverage on their balance sheet. This follows their debt repayment of $800 million that was payable in May 2018. Their strong liquidity position enables them to take this initiative which will increase their financial flexibility and reduce their interest expense.
The tender offer will conclude at the close of January 9, 2018, unless earlier terminated or extended. Holders of validly tendered notes, which are not validly withdrawn, on December 22, 2017 and approved for purchase will get the Total Consideration, which comprises the early tender premium set forth.
Holders of Notes tendered following the Early Tender Date however prior to or at the Expiration Date and approved for purchase following to the tender offer will get merely the tender offer consideration. It will equal the total consideration minus the Early Tender Premium.
CFI Industries plans to accept for payment Notes reliably tendered and not validly withdrawn, prior to or at the Early Tender Date, contingent to the Maximum Tender Sum and the other guidelines stated in the Offer to Purchase. It will prorate approval of such Notes only if the total sum of such Notes surpasses the Maximum Tender Sum. No tenders sent post the Expiration Date will be considered.