FMC Corp (FMC) Mixed Bag

Research evidence excerpt

FMC Corp (FMC) Mixed Bag

FICC Research

Credit Research

1 July 2026

FMC Corp (FMC)

Mixed Bag

Key points: 1) We affirm our UW on FMC 2029s-2049s and

downgrade the secureds to UW; 2) the Tessenderlo

investment helps achieve the debt reduction goal, but takes Edward Brucker, CFA +1 212 526 4435

away a potential sale of company; 3) we think the company edward.brucker@barclays.com

targets the revolver and/or higher-coupon discount bonds; BCI, US

upgrade 2053s to MW. Abanikash+1 212 526 9843Rayaji, CFA

abanikash.rayaji@barclays.com

BCI, US

Investment Overview

We reiterate our Underweight on FMC unsecured 2029s-2049s and the 2055 hybrids. And, given

the rally in the secureds, we lower our rating to Underweight from Market Weight. We view the

Tessenderlo investment as a mixed bag. As a positive, the $400mn will help FMC reach its debt

reduction goal. Conversely, this was the completion of board's Plan B in its search for strategic

options for the company, part of which was to sell FMC as a whole. The likelihood of this positive

tail risk has now declined, in our view.

The FMC credit story will now revolve primarily around execution. The company has been under

significant pressure recently from the patent cliff, elevated generic competition, and weak

farmer economics. We do not expect many of these to get significantly better over the medium

term and think near-term earnings risk is high, likely providing volatility in trading levels, given

the lack of strategic options and asset sales propping up valuations. The company has bought

some time for the new active ingredients to take shape, but this in itself presents execution risk.

The company's plan for the proceeds is not entirely clear. It has stated plans to reduce debt, but

we are unsure what debt it plans to target.