CF Industries gets $2.3 billion in acquisition loans

A unit of CF Industries Holdings Inc., the second-largest maker of nitrogen-based fertilizers, obtained $2.3 billion in financing to fund its takeover of Terra Industries Inc.

The credit agreement includes multiple-draw term loans of as much as $2 billion and a $300 million revolving line of credit, which terminate April 5, 2015, Deerfield-based CF said today in a regulatory filing.

The interest rate on the term and revolving loans will be 3.5 percentage points more than the London interbank offered rate, with a 1.5 percent Libor floor, according to the filing.

The interest rate on the revolver is subject to change depending on CF's total leverage ratio, the company said in the filing. The revolver can be increased to $500 million within 90 days.

CF also got a $1.75 billion multiple-draw bridge loan that expires April 5, 2011, according to the filing.

Morgan Stanley and Bank of Tokyo-Mitsubishi UFJ Ltd. Were lead arrangers on the transaction.

Yara International Asa of Oslo is the largest fertilizer manufacturer.