Fitch Ratings Assigns 'BB+' to Mosaic Credit Facility

Business Wire, Feb 28, 2005

CHICAGO -- Fitch Ratings has assigned a 'BB ' rating to The Mosaic Company's (Mosaic) new $850 million senior secured credit facility. The Rating Outlook is Stable.

The new credit facility consists of a $450 million revolver at Mosaic, a $350 million Term Loan B at Mosaic Global Holdings Inc. (Mosaic Global Holdings), and a $50 million Term Loan A at Mosaic Potash Colonsay ULC, an operating subsidiary of Mosaic Global Holdings. Fitch rates the components of the secured credit facility as follows.

-- Mosaic Company senior secured revolving credit facility 'BB ';

-- Mosaic Global Holdings Inc. senior secured term loans A and B 'BB '.

The ratings reflect the facility's strong collateral position and the likelihood of principal recovery. The new facility is secured by perfected first-priority interest in accounts receivable and inventory, perfected first-priority interest limited to 65% of voting equity at certain foreign subsidiaries, as well as certain real property. The new facility imposes financial covenants, cross-default and cross-acceleration provisions, limitations on indebtedness, preferred equity and restricted payments, as well as restrictions on the purchase or redemption of securities junior to the credit facility. The new credit facility repaid and replaces the secured revolver and term loan at Mosaic Global Holdings, as well as the $160 million interim credit agreement at Mosaic. In October 2004, Fitch indicated that the 'BB ' rating would be assigned to the new Mosaic secured credit facility if such facility was executed as expected. At that time, Fitch also provided debt ratings as follows:

-- Mosaic mandatory convertible preferred securities 'B';

-- Mosaic Global Holdings senior unsecured debt with subsidiary guarantees 'BB';

-- Mosaic Global Holdings senior unsecured debt without subsidiary guarantees 'BB-';

-- Phosphate Acquisition Partners LP senior secured notes 'BB-'.

The Mosaic Company is one of the largest global suppliers of phosphate and potash fertilizers. Mosaic earned approximately $246 million in EBITDA on $3 billion in revenue; the company had $2.5 billion in debt at Nov. 30, 2004.