Question #4 Given exhibit 3, which states Mosaic's current line of credit with its banks, assuming Mosaic credit rating is BBB-/Baa3; L (LIBOR rate) = 2%; and Treasurer decides to withdraw $100,000,000 from its line of credit: a. What is Mosaic's interest cost for this drawn amount? b. What is the undrawn cost? c. Assuming Mosaic has a debt/capital ratio of 45% and interest coverage ratio of 5X, is Mosaic compliant with its financial covenant? d. From the table, what does financial covenant mean to you? Assuming Mosaic's credit was recently upgraded by both the Standard and Poor's and Moody's rating agencies to A-/A3 credit ratings: e. What is the interest cost for the $100,000,000 drawn amount? f. What is undrawn amount cost? & Explain why your calculation in a & bis different from e&f Note: 100 bps = 1% Existing Revolver Terms Borrower Facility Tenor / Maturity Date Purpose The Mosaic Company $2.0 billion revolving credit facility Five-Year / November 18, 2021 General corporate purposes TWO one-year extensions Extension Option $1.0 billion Increase Option LC Subtimit 51500 million Swingline Sublimit Financial Covenant $75.0 million Debt / Capitalization 65% Interest Coverage Ratio 3.00% 75 (old) / 12.5 (new) Upfront Fee (bps) Ratings Und Coop) 70 Draw Cost IL 875 1000 Pricing Grid: 2 AIA A-TA3 BBB-/ Baat BBB/Baa2 00 125 1125 15.0 1250