CHS said Dec. 11 it is selling about $1 billion in senior secured notes due in 2027. It said it intends to use the proceeds of the offering to repurchase bonds due in 2023 and pay related fees and taxes.
In addition, CHS is issuing a cash tender offer for up to $1 billion of its $2.7 billion in outstanding bonds. The cash tender offer expires Jan. 11, unless extended or terminated by CHS.
Moody’s Investors Service assigned a “Caa2” rating to the new senior secured notes due in 2027.
“Moody’s views the transaction as being credit positive because it lengthens Community’s maturity profile. That said, the company will continue to face significant refinancing risk as it pertains to the remaining maturity wall in 2023 post-transaction,” the credit rating agency said.
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