Subsequent Events

3 Months Ended

Mar. 31, 2012

Subsequent Events

Subsequent Events

24.   Subsequent Event

        On May 1, 2012, the Company terminated the 2010 Credit Agreement described in Note 17—Financing Agreements, and all of the guarantees and all of the liens on the assets of the Company and its subsidiaries securing obligations under the 2010 Credit Agreement were released. Immediately after terminating the 2010 Credit Agreement, the Company, as a guarantor, and CF Industries, as borrower, entered into a $500 million senior unsecured credit agreement, dated May 1, 2012 (the 2012 Credit Agreement), which provides for a revolving credit facility (the 2012 Revolving Credit Facility) of up to $500 million with a maturity of five years. On May 1, 2012, the letters of credit outstanding under the 2010 Credit Agreement became letters of credit under the 2012 Credit Agreement. As a result, as of May 1, 2012, there was $491.2 million of available credit under the 2012 Revolving Credit Facility (net of the outstanding letters of credit), and there were no borrowings outstanding.

        Borrowings under the 2012 Credit Agreement will bear interest at a variable rate based on an applicable margin over LIBOR or a base rate. Borrowings under the 2012 Revolving Credit Facility may be used for working capital, capital expenditures, acquisitions, share repurchases and other general purposes. The 2012 Credit Agreement requires that the Company maintain a minimum interest coverage ratio and a maximum total leverage ratio and includes other customary terms and conditions, including customary events of default and covenants.

        All obligations under the 2012 Credit Agreement are unsecured. Currently the Company is the only guarantor of CF Industries' obligations under the 2012 Credit Agreement. Certain of CF Industries' material domestic subsidiaries will be required to become guarantors under the 2012 Credit Agreement only if such subsidiary guarantees other debt for borrowed money (subject to certain exceptions) of the Company or CF Industries in excess of $250 million. Currently, no such subsidiary guarantees debt for borrowed money in excess of $250 million.

        Under the supplemental indentures governing the Notes described in Note 17, the Notes are to be guaranteed by the Company and each of its current and future subsidiaries, other than CF Industries, that from time to time is a borrower or guarantor under the 2010 Credit Agreement, or any renewal, replacement or refinancing thereof, including the 2012 Credit Agreement. Upon the release by the Company and its subsidiaries of their guarantees under the 2010 Credit Agreement, those subsidiaries were automatically released from their guarantees of the Notes. In the event that a subsidiary of the Company, other than CF Industries, becomes a borrower or a guarantor under the 2012 Credit Agreement, it would be required to become a guarantor of the Notes.