Fertilizer Bond Returns at Higher Yield

Mexico’s Fertinal is attempting a new bond issue again, back with tighter covenants and a higher yield. Investors say the fertilizer producer was looking to get the $200m 2015 NC3 deal done this week at a 13.5% yield. UBS is managing the sale, postponed last week after the buyside did not bite at 12% handle talk. Proceeds from the B/B2 rated issue are marked for a $180m bridge, to partially finance capex and support working capital. The bridge is being used to reacquire assets from former creditors and satisfy other obligations associated with bankruptcy, according to Moody’s.