The Saskatoon, Saskatchewan-based company is offering the debt in three US$500 million tranches, with the first, of 1.9% senior notes, due in 2023, the second of 2.95% senior notes due in 2030 and the final tranch of 3.95% senior notes due 2050.
The offering is expected to close on Wednesday.
Moody's Investors Service has assigned the company a credit profile rating of Baa2 with a stable outlook, based on its leading production profile, its substantial and growing retail business that lends stability to earnings, and "solid credit metrics" with 2020 debt-to-EBITDA of around 3x and retained cash flow to debt close to 20%.
According to the ratings agency, Nutrien has a good liquidity profile. Pro forma for the $1.5 billion notes offering and at March 31, Nutrien, will have $2.3 billion of cash and $1.4 billion of availability under the $4.5 billion unsecured revolving credit facility due April 2023.
Barclays Capital, CIBC World Markets, Citigroup Global Markets, HSBC Securities and TD Securities acted as the joint book-running managers for the offering.
Nutrien, which annually produces and distributes about 25 million tonnes of potash, nitrogen and phosphate products across the world, last week maintained it would post "solid" financial results for the first half of 2020 despite reporting a net loss of $35 million for the March quarter. It has also cut its full-year earnings outlook and pared potash production guidance.
Shares in the company (NTR:Nasdaq) are down about one-third in the year to date at C$34.62, capitalising it at $20 billion. The equity has ranged between $23.85-$55.34 per share over the past 12 months.
