CF Industries this morning disclosed that it has amended its revolver due September 2018, reducing the size of the commitments by $500 million, to $1.5 billion and modifying the total leverage covenant.
Under the terms of the amendment, the total-leverage covenant is now set at 5.25x through March 31, 2017, stepping to 5x in the second quarter of 2017, 4.75x in the third quarter, and to 4x in the fourth. By comparison, the covenant was previously set at 3.75x. After the fourth quarter of 2017, the leverage covenant returns back to 3.75x through maturity.
The revolver is also covered by an interest-coverage covenant set at 2.75x. As of March 31, there were no outstanding borrowings under the revolver.
Morgan Stanley is administrative agent.
In August 2015, CF Industries obtained a commitment letter providing a $4 billion bridge loan in connection with its planned acquisition of OCI N.V., the parent company of OCI Beaumont, in a transaction valued at roughly $8 billion. In May 2016, though, the acquisition agreement was terminated.
CF Industries makes and distributes nitrogen fertilizers and other nitrogen products worldwide. The company’s shares trade on the NYSE under the ticker CF. — Richard Kellerhals
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