OVERLAND PARK, Kan. - Compass Minerals International, Inc. (NYSE:CMP), a leading provider of essential minerals with a market capitalization of $804 million, has announced the pricing of a private offering of $650 million in senior notes with an 8.000% yield, maturing in 2030. According to InvestingPro data, the company’s stock has shown remarkable strength, delivering a 69% return year-to-date. The company expects to finalize the sale on or about June 16, 2025, subject to standard closing conditions.
The unsecured senior notes will be backed by guarantees from certain domestic subsidiaries of Compass Minerals. Proceeds from the sale are earmarked for multiple purposes: repaying outstanding amounts under the company’s senior secured credit facility, redeeming $350 million of its 6.750% senior notes due in 2027, covering transaction-related fees and expenses, bolstering the company’s cash reserves, and for general corporate functions. The company maintains a healthy current ratio of 1.84 and generates strong free cash flow, with a yield of 11%.
In compliance with securities regulations, the offering is limited to qualified institutional buyers and non-U.S. persons, as these notes and related guarantees have not been registered under the Securities Act of 1933 or any state securities laws.
Concurrent with this offering, Compass Minerals also confirmed its plan to redeem $350 million of the 2027 notes on June 17, 2025. The redemption price is set at 101.125% of the principal amount plus any accrued and unpaid interest up until the redemption date. Following this redemption, $150 million of the 2027 notes will remain outstanding.
This financial maneuver is part of Compass Minerals’ broader strategy to manage its debt portfolio. The company, which operates 12 facilities across the U.S., Canada, and the U.K., is known for its commitment to safety and meeting customers’ needs in various markets, including agriculture and consumer products. InvestingPro analysis indicates the company is currently undervalued, with analysts expecting net income growth this year. For detailed insights and more exclusive financial metrics, check out the comprehensive Pro Research Report available on InvestingPro, covering over 1,400 US stocks including CMP.
The information in this article is based on a press release statement from Compass Minerals.
In other recent news, Compass Minerals International Inc. reported its first-quarter 2025 earnings, significantly surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.63, well above the forecasted $0.0045. Revenue also saw a substantial increase, reaching $495 million compared to the anticipated $413.71 million. This represents a 36% year-over-year growth, highlighting the company’s strong financial performance. Compass Minerals has effectively reduced its operating loss to $3.1 million from $39.3 million the previous year. Additionally, the salt business revenue rose to $433 million, up from $310 million, while plant nutrition revenue increased by 16% year-over-year to $58 million. The company has raised its adjusted EBITDA guidance for the year to $188 million, indicating confidence in continued financial improvement. These developments reflect Compass Minerals’ strategic focus on optimizing core businesses and improving financial results.
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