Compass Minerals Sells $100M Debt To Back Tender

OVERLAND PARK, Kan. (AP) — Compass Minerals International Inc. on Thursday said it plans to sell $100 million in notes to help fund a tender offer aimed at buying up older debt.

In separate announcements, the company, which makes mineral-based products from food additives to highway deicing salt, started the cash tender offer and announced details of the new debt sale.

The tender offer aims to buy all of the company's outstanding $89.6 million in 12 percent senior subordinated discount notes due 2013. It will expire at midnight EDT on June 18. Under the terms of the offer, holders of the 2013 notes will receive $1,045 for each $1,000 worth of notes held, minus $20 per $1,000 for a "consent payment." Holders will also be paid accrued and unpaid interest from the most recent interest payment date.

The tender offer is contingent upon the company's sale of $100 million in new debt. The company said it plans to sell that amount of senior notes due 2019 in a private placement. The notes are being offered only to qualified institutional buyers.

In morning trading, Compass Minerals shares fell $1.61, or 3 percent, to $51.57. The stock has traded between $36.40 and $87.88 in the past 52 weeks, and started the session down about 9 percent for the year.