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Nutrien (NTR) Prices $1 Billion of 3-Year & 10-Year Senior Notes

Nutrien Ltd. NTR declared the pricing of $600 million of 5.400% senior notes due Jun 21, 2034, and $400 million of 5.200% senior notes due Jun 21, 2027. The offering is anticipated to conclude, subject to normal closing conditions, on or around Jun 21, 2024. The senior notes, which are registered under both the U.S. and Canadian multi-jurisdictional disclosure systems, will not be made available for offering in Canada or to Canadian residents.

The net proceeds from this offering will be used by Nutrien to repay its $500 million aggregate principal amount of the 5.900% senior notes on their maturity on Nov 7, 2024, working capital financing and  reduce its outstanding indebtedness under its short-term credit facilities, apart from other general corporate purposes.

The senior notes will be unsecured and will rank on an equal footing with the current senior unsecured debt of Nutrien. CIBC World Markets Corp., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC are the joint book-running managers for the offering.

The offering will take the form of a prospectus supplement dated Jun 17, 2024, to Nutrien's short form base shelf prospectus dated Mar 22, 2024, which was filed under the multijurisdictional disclosure system with the Securities and Exchange Commission (“SEC”) in the United States and the securities regulatory authorities in each province of Canada. Regarding the senior notes offering, a final prospectus supplement will be submitted to the SEC and the concerned Canadian regulatory bodies.

Shares of Nutrien have lost 15.6% over the past year compared with its industry’s 20% decline.

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The company, on its first-quarter call, said that it expects retail adjusted EBITDA to be between $1.65 billion and $1.85 billion, reflecting its forecast for increased crop nutrient sales volumes and profit margins in its North American operations during the first half of 2024, as well as improved crop input margins in Brazil during the second half of the year. This guidance also incorporated a full year of earnings from the company's Retail assets in Argentina, Chile and Uruguay.

For potash, the company's sales volume guidance, estimated between 13 and 13.8 million tons, assumes a more balanced distribution of volumes between the first and second halves compared with the prior year. The nitrogen sales volume guidance, ranging from 10.6 to 11.2 million tons, is based on higher operating rates at the company's North American and Trinidad plants, along with increased sales of upgraded products like urea and nitrogen solutions. Phosphate sales volume guidance, which is in the range of 2.6-2.8 million tons, anticipates higher operating rates compared with the 2023 tally.

Nutrien Ltd. Price and Consensus

Nutrien Ltd. price-consensus-chart | Nutrien Ltd. Quote

Zacks Rank & Key Picks

Nutrien currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space are ATI Inc. ATI, Carpenter Technology Corporation CRS and Ecolab Inc. ECL. 

ATI currently carries a Zacks Rank #2 (Buy). ATI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.3%. The company’s shares have gained 39.7% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Carpenter Technology currently sports a Zacks Rank of 1. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company’s shares have gained 95.3% in the past year.

The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. The consensus estimate for ECL’s current-year earnings has gone up in the past 30 days. ECL, which currently carries a Zacks Rank of 2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.3%. The company’s shares have gained roughly 33.6% in the past year.

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