Mosaic Bonds Fall After Potash Producer’s $2 Billion Offering

Bonds of Mosaic Co. (MOS) fell a day after a $2 billion offering by the largest U.S. producer of potash and phosphate fertilizer.

The company’s $600 million of 5.625 percent securities due November 2043 fell 1.07 cents from the issue price to 98.84 cents on the dollar, yielding 5.71 percent at 2:32 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The extra yield investors demand to own the debt instead of similar-maturity Treasuries narrowed to 182.7 basis points from 188 at issuance.

The debt, part of Mosaic’s first offering since October 2011, was issued at a discount of 99.91 cents on the dollar and rose to as high as 101.37 cents in initial trading yesterday, Trace data show.

The company’s $900 million of 4.25 percent securities due November 2023 fell 0.56 cent from the issue price to 99.23 cents on the dollar to yield 4.35 percent, Trace data show.

Mosaic, based in Plymouth, Minnesota, will use proceeds for general corporate purposes, including capital expenditures, share buybacks or dividend increases, according to a regulatory filing yesterday.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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