CF Industries Holdings, Inc. (NYSE: CF) (“CF Industries” or “the
Company”) today announced that it has completed the sale of its
phosphate business to The Mosaic Company for $1.4 billion or
approximately $1 billion net of taxes and other adjustments. The sale
follows the terms of the definitive agreement announced on October 28,
2013.
“We are pleased to have completed the sale of our phosphate operations
to Mosaic,” said Tony Will, president and chief executive officer, CF
Industries Holdings, Inc. “The net proceeds from the sale will be
redeployed to execute the strategic initiatives we already have in
progress, namely our nitrogen capacity expansions and completing our
share repurchase authorization. Additionally, the supply agreements we
have put in place with Mosaic will provide us a steady base of ammonia
demand with attractive economics.”
In conjunction with the close of the sale transaction, CF Industries
will begin to supply Mosaic with its share of the ammonia produced by
the Company’s 50 percent owned production facility in the Republic of
Trinidad and Tobago. Additionally, the Company has a long-term supply
agreement with Mosaic to supply between 600,000 and 800,000 tons of
ammonia per year for up to 15 years from its Donaldsonville nitrogen
complex. Deliveries of ammonia will begin no later than January 1, 2017
and will be priced at a defined margin over the cost of natural gas at
Donaldsonville.
About CF Industries Holdings, Inc.
CF Industries Holdings, Inc., through its subsidiaries, is a global
leader in nitrogen fertilizer manufacturing and distribution, serving
both agricultural and industrial customers. CF Industries, headquartered
in Deerfield, Illinois, operates world-class nitrogen fertilizer
manufacturing complexes in the central United States and Canada and
distributes plant nutrients through a system of terminals, warehouses,
and associated transportation equipment located primarily in the
midwestern United States. The company also owns 50 percent interests in
GrowHow UK Limited, a fertilizer manufacturer in the United Kingdom; an
ammonia facility in the Republic of Trinidad and Tobago; and KEYTRADE
AG, a global fertilizer trading organization headquartered near Zurich,
Switzerland. CF Industries routinely posts investor announcements and
additional information on the company's Web site at www.cfindustries.com
and encourages those interested in the company to check there frequently.
Safe Harbor Statement
All statements in this communication, other than those relating to
historical facts, are “forward-looking statements.” These
forward-looking statements are not guarantees of future performance and
are subject to a number of assumptions, risks and uncertainties, many of
which are beyond our control, which could cause actual results to differ
materially from such statements. These statements include, but are not
limited to, statements about the use of proceeds and the expected
benefits of the proposed transactions with Mosaic; statements about
future strategic plans; and statements about future financial and
operating results. Important factors that could cause actual results to
differ materially from our expectations include, among others: risks and
uncertainties arising from the volatility of natural gas prices in North
America; the cyclical nature of our business and the agricultural
sector; the global commodity nature of our fertilizer products, the
impact of global supply and demand on our selling prices, and the
intense global competition from other fertilizer producers; conditions
in the U.S. agricultural industry; reliance on third party providers of
transportation services and equipment; risks associated with cyber
security; weather conditions; our ability to complete our production
capacity expansion projects on schedule as planned and on budget or at
all; risks associated with other expansions of our business, including
unanticipated adverse consequences and the significant resources that
could be required; potential liabilities and expenditures related to
environmental and health and safety laws and regulations; our potential
inability to obtain or maintain required permits and governmental
approvals; future regulatory restrictions and requirements related to
greenhouse gas emissions; the seasonality of the fertilizer business;
the impact of changing market conditions on our forward sales programs;
risks involving derivatives and the effectiveness of our risk
measurement and hedging activities; the significant risks and hazards
involved in producing and handling our products against which we may not
be fully insured; our reliance on a limited number of key facilities;
risks associated with joint ventures; acts of terrorism and regulations
to combat terrorism; difficulties in securing the supply and delivery of
raw materials, increases in their costs or delays or interruptions in
their delivery; risks associated with international operations; losses
on our investments in securities; deterioration of global market and
economic conditions; our ability to manage our indebtedness; and loss of
key members of management and professional staff. More detailed
information about factors that may affect our performance may be found
in our filings with the Securities and Exchange Commission, including
our most recent periodic reports filed on Form 10-K and Form 10-Q, which
are available in the Investor Relations section of the CF Industries
website. Forward-looking statements are given only as of the date of
this release and we disclaim any obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Copyright Business Wire 2014