OAO Uralkali, the world’s largest potash producer by output, will raise a $700 million loan this month, according to two people with knowledge of the matter.
The company obtained more than $1.3 billion in commitments from 15 banks and decided to borrow a smaller amount after selling $650 million of five-year notes last month, said the people, who asked not to be identified because the terms are private. Bank of America Corp. coordinated the loan deal and BNP Paribas SA will act as agent, the people said.
The five-year pre-export financing, where debt is backed by cash flow linked to the borrower’s export contracts, will pay an interest margin of 215 basis points, or 2.15 percentage points, more than the London interbank offered rate, according to data compiled by Bloomberg.
Olga Ilyina, a Moscow-based spokeswoman for Uralkali, didn’t immediately reply to an e-mail and telephone call seeking comment on the financing.
Uralkali, controlled by a group of billionaires including Suleiman Kerimov, is rated Baa3 by Moody’s Investors Service and an equivalent BBB- by Standard & Poor’s and Fitch Ratings, the lowest investment-grade rank, the data show.