CHICAGO — The Iowa Fertilizer Co. expects to offer $1.2 billion of tax-exempt Midwestern Disaster Area Bonds next week in a long-term deal that will take out short-term financing to fund construction of a nitrogen fertilizer plant in southeast Iowa.

Several market participants said the deal faces a headwind from the negative headlines that followed the explosion of a Texas fertilizer plant last week, killing 14 and injuring more than 100. Market participants said the finance team was conducting a roadshow and investor meetings and late Thursday posted a supplement to the offering statement seeking to calm any investor concerns.

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