Potash Risk Rises on Bond Sale to Fund Buyback: Canada Credit
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Potash Corp. of Saskatchewan Inc.’s borrowing costs may rise after the company sold $1 billion in bonds to help it buy back stock following Canada’s rejection of BHP Billiton Ltd.’s $40 billion bid for the fertilizer maker.
Potash Corp.’s first debt sale in 14 months consisted of $500 million each of 7- and 30-year bonds. The world’s biggest fertilizer maker said on Nov. 17 it planned to repurchase as much as $2 billion in shares after Melbourne-based BHP abandoned its hostile bid.