CHS said it intends to use the proceeds from the $1.46 billion offering of notes to purchase outstanding senior secured notes due in 2021, redeem all 2021 notes not tendered and pay related fees and expenses. The sale of the notes is expected to be consummated on Feb. 6.
Fitch Ratings assigned a “B/RR1” rating to the senior secured notes due in 2025. The rating agency said the refinancing transaction will improve CHS’ liquidity profile and buys the company more time to execute its operational turnaround plan. Fitch noted that CHS is facing several challenges, including a high overall debt burden and weak free cash flow generation.
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