NYSE, TSX: NTR
SASKATOON, Feb. 20, 2018 /CNW/ - Nutrien Ltd. (Nutrien)
announced today that its Board of Directors has declared a
quarterly dividend of US$0.40 per
common share payable on April 20,
2018 to shareholders of record on March 29, 2018. The dividend represents a 27
percent increase from its legacy companies combined payout level.
Nutrien will target a stable and growing dividend that represents
40 to 60 percent of free cash flow after sustaining capital through
the cycle.
Nutrien's Board of Directors also approved the purchase of
up to five percent of Nutrien's outstanding common
shares over a one-year period through a normal course issuer bid
(NCIB).
"Today's announcement reflects the confidence in our
business to generate strong and growing free cash flow," said
Nutrien President and Chief Executive Officer Chuck Magro. "Nutrien is the leading global crop
input company, with significant leverage to a recovery in
agricultural markets and earnings stability from our integrated
platform. We are committed to returning cash to shareholders,
while maintaining the financial strength to deliver on growth
opportunities that provide superior long-term returns."
Nutrien intends to file a business acquisition report on
EDGAR and SEDAR on February 26, 2018
in connection with the arrangement involving Agrium Inc. and Potash
Corporation of Saskatchewan Inc. Pro-forma unaudited consolidated
statement of earnings and balance sheet information will be
disclosed in this report.
Quarterly Dividend
Registered shareholders
who are residents of Canada as
reflected in Nutrien's shareholders register, as well as beneficial
holders (i.e. shareholders who hold their common shares through a
broker or other intermediary) whose intermediary is a participant
in CDS Clearing and Depositary Services Inc. or its nominee, CDS
& Co., will receive their dividend in Canadian dollars,
calculated based on the Bank of Canada daily exchange rate on March 29, 2018. Registered shareholders resident
outside of Canada as reflected in
Nutrien's shareholders register, including the United States, as well as beneficial
holders whose intermediary is a participant in The Depository Trust
Company or its nominee, Cede & Co., will receive their dividend
in U.S. dollars. However, registered shareholders of Nutrien may
elect to change the currency of their dividend payments to U.S.
dollars or Canadian dollars, as applicable. In addition, Nutrien
offers registered shareholders direct deposit by electronic funds
transfer for dividend payments.
Registered shareholders may elect to change the currency
of their dividend and enroll for direct deposit by contacting,
Nutrien's registrar and transfer agent, AST Trust Company
(Canada), directly (1-800-387-0825
or inquiries@astfinancial.com). Beneficial shareholders, who hold
their shares through a broker, should contact their broker to
determine the ability and necessary steps involved in an election
to change the currency of their dividend payment. For further
details, please visit
www.nutrien.com/investors/shareholder-information/dividends.
All dividends paid by Nutrien are, pursuant to subsection
89(14) of the Income Tax Act (Canada), designated as eligible
dividends.
Normal Course Issuer Bid
Under the NCIB,
purchases may be made through the facilities of the Toronto Stock
Exchange (TSX), the New York Stock Exchange or alternative Canadian
trading systems or as otherwise permitted by the Canadian
Securities Administrators. Nutrien has received approval of
the TSX for the NCIB. The actual number of common shares that
may be purchased under the NCIB and the timing of any such
purchases will be determined by Nutrien. Nutrien believes
that, purchasing its own common shares represents an attractive
investment opportunity, is in the best interests of the company and
is consistent with Nutrien's objective of delivering a strong
return of capital to its shareholders over time. As of
February 12, 2018, Nutrien had
644,198,473 common shares outstanding and therefore under the NCIB
Nutrien would be permitted to repurchase up to 32,209,923 of its
outstanding common shares. Common shares purchased under the
NCIB will be cancelled.
The NCIB will be effected in accordance with the TSX's
normal course issuer bid rules and/or Rule 10b-18 under the U.S. Securities Exchange Act of
1934, which contain restrictions on the number of common shares
that may be purchased on a single day, subject to certain
exceptions for block purchases, based on the average daily trading
volumes of Nutrien's common shares on the applicable exchange.
Subject to exceptions for block purchases, Nutrien will limit daily
purchases of common shares on the TSX in connection with the NCIB
to no more than 25 percent (244,293) of the average daily trading
volume of the common shares on the TSX (977,173) during any trading
day. Purchases under the NCIB will be made through open market
purchases at market price, as well as by other means as may be
permitted by applicable securities regulatory authorities,
including private agreements. Any purchases made by private
agreement under an issuer bid exemption order issued by a
securities regulatory authority will be at a discount to the
prevailing market price as provided in any exemption order.
Purchases of common shares may commence on or about February 23, 2018 and will expire on the earlier
of February 22, 2019, the date on
which the company has acquired the maximum number of common shares
allowable or otherwise decides not to make any further repurchases.
Nutrien intends to enter into an automatic purchase plan with a
broker which will enable Nutrien to provide standard instructions
and purchase common shares on the open market during self-imposed
blackout periods. Outside of these black-out periods, common shares
may be purchased in accordance with management's
discretion.
About Nutrien
Nutrien is the
world's largest provider of crop inputs and services, playing a
critical role in helping growers increase food production in a
sustainable manner. We produce and distribute over 26 million
tonnes of potash, nitrogen and phosphate products world-wide. With
this capability and our leading agriculture retail network, we are
well positioned to supply the needs of our customers. We operate
with a long-term view and are committed to working with our
stakeholders as we address our economic, environmental and social
priorities. The scale and diversity of our integrated portfolio
provides a stable earnings base, multiple avenues for growth and
the opportunity to return capital to shareholders. For further
information visit us at www.nutrien.com.
Forward-Looking Statements
Certain statements and other information included in
this press release constitute "forward-looking information" or
"forward-looking statements" (collectively, "forward-looking
statements") under applicable securities laws (such statements are
usually accompanied by words such as "anticipate", "expect",
"believe", "may", "will", "should", "estimate", "intend" or other
similar words). All statements in this press release, other than
those relating to historical information or current conditions, are
forward-looking statements, including, but not limited to Nutrien's
intention to commence an NCIB and, if accepted by the TSX, the
timing, methods and quantity of any purchases of common shares
under the NCIB, and the date of the filing of Nutrien's business
acquisition report.
Forward‐looking statements in this press release are
based on certain key expectations and assumptions made by Nutrien,
including expectations and assumptions concerning: Nutrien's views
with respect to its financial condition and prospects, the
stability of general economic and market conditions, currency
exchange rates and interest rates, the availability of cash for
repurchases of common shares under the NCIB, the existence of
alternative uses for Nutrien's cash resources and compliance with
applicable laws and regulations pertaining to an NCIB. Although
Nutrien believes that the expectations and assumptions on which
such forward‐looking statements are based are reasonable, undue
reliance should not be placed on the forward‐looking statements
because Nutrien can give no assurance that they will prove to be
correct.
Forward-looking statements are subject to various risks
and uncertainties which could cause actual results and experience
to differ materially from the anticipated results or expectations
expressed in this press release. The key risks and uncertainties
include, but are not limited to: Nutrien's future capital
requirements, market and general economic conditions, demand for
Nutrien's products, and unforeseen legal or regulatory developments
and other risk factors detailed from time to time in Nutrien
reports filed with the Canadian securities regulatory authorities
and the United States Securities and Exchange
Commission.
Nutrien disclaims any intention or obligation to update
or revise any forward-looking statements in this press release as a
result of new information or future events, except as may be
required under applicable U.S. federal securities laws or
applicable Canadian securities legislation or applicable U.S.
federal securities laws.
FOR FURTHER INFORMATION:
Investor and Media Relations:
Richard Downey
Vice President, Investor & Corporate Relations
(403) 225-7357
Investors@nutrien.com
Investor Relations:
Jeff Holzman
Senior Director, Investor Relations
(306) 933-8545
Todd Coakwell
Director, Investor Relations
(403) 225-7437
Contact us at: www.nutrien.com
SOURCE Nutrien Ltd.