Mosaic secures $1 billion credit facility to refinance debt amid rising input costs.

Mosaic is one of the world’s largest producers of concentrated phosphate and potash crop nutrients. Its Phosphate segment operates mines and processing plants in Florida and Louisiana, plus a 75% interest in the Miski Mayo phosphate mine in Peru. Its Potash segment runs mines and facilities in Canada and the U.S. A third segment, Mosaic Fertilizantes, covers five phosphate mines and four chemical plants in Brazil along with a broad distribution network across South America.

Both sulfur and ammonia are critical feedstocks for producing DAP and MAP. Sulfur, much of which is sourced as a byproduct of Middle Eastern oil refining, has seen supply severely disrupted by the effective closure of the Strait of Hormuz since late February 2026. The Persian Gulf accounts for roughly 50% of global seaborne sulfur liftings. Ammonia has been similarly affected, with Gulf producers unable to move product at normal volumes. Mosaic estimated these input cost pressures would worsen quarter-on-quarter.

Mosaic guided Q2 DAP realizations in the $760–$780 per tonne range, with stripping margins above $400 per tonne. That is well above the February 2026 pre-crisis benchmark of roughly $622 per tonne, and reflects the supply tightness caused by Gulf disruptions and China’s continued export restrictions. Potash markets have been more stable, with global demand described as resilient and Canpotex fully committed through June.

Mosaic missed Q1 EPS expectations but beat on revenue. The company posted operating earnings of $233 million for the quarter, with phosphate volumes at 1.696 million tonnes. CEO Bodine flagged “cautious purchasing in the Americas” being offset by stronger Asian demand, particularly from India, which the government signaled it would continue supporting with subsidies.

The company has not disclosed full terms, but refinancing existing debt in an elevated-rate environment typically signals a company is managing its maturity profile and liquidity runway proactively. Mosaic carries a market capitalization of approximately $6.99 billion and a P/E ratio of 12.79. Analysts maintain a range of price targets from $24 to $40, with average targets implying meaningful upside from recent trading levels.