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Bloomberg reported that K+S, Europe’s biggest potash producer, is willing to stake its credit ratings on funding a new mine because it believes that potash prices will be rebounding back to $400 per ton.
Bloomberg reported that K+S, Europe’s biggest potash producer, is willing to stake its credit ratings on funding a new mine because it believes that potash prices will be rebounding back to $400 per ton.
According to Bloomberg:
A hybrid bond to raise one-third of the investment, or about $1.4 billion, for the Canadian project called Legacy is one option being considered, Chief Financial Officer Burkhard Lohr told analysts at a meeting yesterday. Lohr’s comments, reported in a Bernstein Research note today, were confirmed by Michael Wudonig, a spokesman at the Kassel, Germany-based potash producer.
Analysts from Bernstein Research cautioned investors:
Watch for a potential downgrade of debt status since Legacy will continue with more debt financing. How K+S sees the industry and how we differ.