Agrium Inc.
NYSE : AGU
TSX : AGU

Agrium Inc.

May 19, 2006 16:06 ET

Agrium to Redeem $101-Million in Senior Notes

CALGARY, ALBERTA--(CCNMatthews - May 19, 2006) -

ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. (TSX:AGU) (NYSE:AGU) announced today it intends to redeem the approximately $30-million outstanding principal amount of its 6.86 percent Senior Notes due December 29, 2007 and the approximately $71-million outstanding principal amount of its 7.06 percent Senior Notes due December 29, 2010 (the "Notes"). The Notes will be redeemed in their entirety on June 19, 2006 at a price equal to the outstanding principal amount of the Notes plus accrued and unpaid interest to such date together with any yield-maintenance amount. Agrium intends to use a portion of the net proceeds from its $300-million debenture offering announced on May 17, 2006 to fund the redemption, consistent with the announced use of proceeds for the offering.

About Agrium

Agrium Inc. is a leading global producer and marketer of agricultural nutrients and industrial products and a major retail supplier of agricultural products and services in both North and South America. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium's strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.

Certain statements in this press release constitute forward-looking statements, including references to the planned redemption of Notes, the planned use of proceeds from the Corporation's debenture offering and our strategy. Such forward-looking statements involve known and unknown risks and uncertainties, including those referred to in the management discussion and analysis section of the Corporation's most recent annual report to shareholders, and in particular the sections headed "Our Key Business Sensitivities" and "Business Risks" therein, and are further discussed in the relevant parts of our Management's Discussion and Analysis for the three months ended March 31, 2006, and in particular the section headed "Key Risks and Uncertainties" therein, which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Agrium disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events.


Contact Information

  • Agrium Inc.
    Richard Downey
    Director, Investor Relations
    (403) 225-7357
    or
    Agrium Inc.
    Christine Gillespie
    Investor Relations Manager
    (403) 225-7437
    Website: www.agrium.com