CVR Partners, LP and CVR Nitrogen Finance Corporation Completes the Issuance of $550 Million in Aggregate Principal Amount of 6.125% Senior Secured Notes Due 2028
June 23, 2021 at 04:54 pm EDT
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On June 23, 2021, CVR Partners, LP, CVR Nitrogen Finance Corporation (“ Finance Co. ” and, together with the Partnership, the “ Issuers ”), completed the issuance of $550 million in aggregate principal amount of 6.125% Senior Secured Notes due 2028 (the “ Notes ”) in a private offering (the “ Private Offering ”) under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the “ Securities Act ”). The Partnership used the net proceeds from the Private Offering, together with cash on hand, to fund the partial redemption of $550 million of the Issuers’ outstanding 9.250% Senior Secured Notes due 2023 (the “ 2023 Notes ”), which were called for redemption on June 8, 2021. The Notes will mature on June 15, 2028 and were issued at par for net proceeds of approximately $548 million, after deducting the initial purchasers’ discount and estimated offering expenses. Interest on the Notes is payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2021, to holders of record on the immediately preceding June 1 and December 1. The Notes are fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by all of the Partnership’s existing subsidiaries.
CVR Partners, LP owns and operates the nitrogen fertilizer business. It produces nitrogen fertilizer products at two manufacturing facilities, one located in Coffeyville, Kansas operated by its subsidiary, Coffeyville Resources Nitrogen Fertilizers, LLC (the Coffeyville Facility) and one located in East Dubuque, Illinois operated by its wholly owned subsidiary, East Dubuque Nitrogen Fertilizers, LLC (EDNF). Both facilities manufacture ammonia and are able to further upgrade such ammonia to other nitrogen fertilizer products, principally urea ammonium nitrate (UAN). Nitrogen fertilizer is used by farmers to improve the yield and quality of their crops, primarily corn and wheat. Its products are sold on a wholesale basis in the United States of America. The Coffeyville Facility manufacturing facility includes a 1,300 ton-per-day ammonia unit, a 3,100 ton-per-day UAN unit and a dual-train gasifier complex having a capacity of 89 million standard cubic feet per day of hydrogen.
CVR Partners, LP and CVR Nitrogen Finance Corporation Completes the Issuance of $550 Million in Aggregate Principal Amount of 6.125% Senior Secured Notes Due 2028