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While the dividend (6-8%) has been sweet for the last 6 years, we are seeing this stock come to an end at the price of $84.033 on 4/2/18. I hate to say it, but, while a forced sale, I think this will constitute an end to Mr. Market's consecutive winners (unless buyouts do not count).
This event actually makes me look back at all the winners since TNH and once again remind me of how incredibly HUGE Mr. Market truly is!
CF Industries Holdings, Inc. (NYSE: CF) announced today that its wholly owned subsidiary Terra Nitrogen GP Inc. (TNGP) has elected to exercise its right to purchase all of the 4,612,562 publicly traded common units of Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) on April 2, 2018, for a cash purchase price of $84.033 per unit in accordance with the terms of TNCLP's partnership agreement. As of the April 2, 2018, purchase date, all rights of the holders of the units will terminate, with the exception of the right to receive payment of the purchase price.
"Purchasing all of the publicly traded common units of TNCLP will allow CF to simplify our corporate structure and significantly reduce administrative costs associated with operating TNCLP," said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. "It will be another positive step forward in our ongoing effort to reduce CF's controllable costs."
The purchase price of $84.033 per unit was determined under the terms of TNCLP's partnership agreement as the average of the daily closing prices per common unit for the 20 consecutive trading days beginning with January 5, 2018 and ending with February 2, 2018.
The estimated purchase price of all of the 4,612,562 publicly traded common units of TNCLP is approximately $390 million. CF intends to fund the purchase with cash on hand. Upon completion of the purchase, TNCLP units will cease to be publicly traded or listed on the New York Stock Exchange.
This event actually makes me look back at all the winners since TNH and once again remind me of how incredibly HUGE Mr. Market truly is!
CF Industries Holdings, Inc. (NYSE: CF) announced today that its wholly owned subsidiary Terra Nitrogen GP Inc. (TNGP) has elected to exercise its right to purchase all of the 4,612,562 publicly traded common units of Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) on April 2, 2018, for a cash purchase price of $84.033 per unit in accordance with the terms of TNCLP's partnership agreement. As of the April 2, 2018, purchase date, all rights of the holders of the units will terminate, with the exception of the right to receive payment of the purchase price.
"Purchasing all of the publicly traded common units of TNCLP will allow CF to simplify our corporate structure and significantly reduce administrative costs associated with operating TNCLP," said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. "It will be another positive step forward in our ongoing effort to reduce CF's controllable costs."
The purchase price of $84.033 per unit was determined under the terms of TNCLP's partnership agreement as the average of the daily closing prices per common unit for the 20 consecutive trading days beginning with January 5, 2018 and ending with February 2, 2018.
The estimated purchase price of all of the 4,612,562 publicly traded common units of TNCLP is approximately $390 million. CF intends to fund the purchase with cash on hand. Upon completion of the purchase, TNCLP units will cease to be publicly traded or listed on the New York Stock Exchange.
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