CF Industries offers $1B in stock after Terra deal

DEERFIELD, Ill.

Fertilizer company CF Industries publicly offering about $1 billion in common stock Friday, a day after closing on the $4.7 billion buyout of Terra Industries Inc.

The company priced an offering for just over 11.2 million shares at $89 apiece, marking a 1 percent discount to Thursday's closing price of $90.

The company plans to use the money to repay outstanding debt under a $1.75 billion senior secured bridge facility, used in the Terra deal.

The closing of that Terra deal this week ended a year of bids and counter bids between the two companies, which led to the creation of one of the largest fertilizer makers in the world.

Underwriters have the option to additionally buy up to just under 1.7 million shares to cover overallotments. Morgan Stanley & Co. Inc. is the sole book-running manager.

The offering by Holdings Inc. is expected to close on April 21.