Officials of IMC Fertilizer Group Inc. turned their attention to quickly completing a phosphate operations joint venture, after wrapping up a financial restructuring Tuesday.
The Northbrook company said it completed the placement of $260 million in senior notes to qualified institutional buyers, consisting of $135 million of 10 1/8 percent, eight-year notes and $125 million of 10 3/4 percent, 10-year notes.
On Wall Street, the stock closed at $29.62 a share, up 62 cents.
“We now welcome the opportunity to move forward by focusing on completing the phosphate joint venture with Freeport-McMoRan Resource Partners, improving our business and meeting our customers’ needs,” said Wendell F. Bueche, president and chief executive.
An IMC spokesman said negotiations are on target to meet a Thursday deadline to complete the deal. New Orleans-based Freeport and IMC would combine phosphate operations in a joint venture to be run by IMC. The object is to pare operating costs by $80 million.
IMC was forced to go to the debt market by a financial squeeze mainly brought on by the lowest phosphate prices in 20 years and a costly liability settlement.
Proceeds will be used to pay $60.6 million due Wednesday to Angus Chemical Co. and its insurer from the suit settlement, $100 million to repay bank borrowings and $50 million to repurchase receivables previously sold. The remainder will be used to pay fees and expenses related to IMC’s financial restructuring and for general corporate purposes.
The $60.6 million is the first installment of a $180 million settlement with Angus and its insurer. IMC setted in April to cover claims resulting from a 1991 explosion at a nitroparaffin plant in Sterlington, La., that was owned by Angus and operated by IMC.
For the settlement, IMC posted a third-quarter charge of $108.5 million and took a loss of $113.7 million in the period ended March 31. Directors then voted to suspend the 27-cent quarterly dividend. The company has said it expects to report an operating loss in the fourth quarter ending Wednesday.
As part of the financing package, the company said it completed an agreement with Prudential Insurance Co. of America amending $225 million of 11 1/4 percent notes and entered into a new $100 million revolving credit agreement with a group of banks.
