Itafos and its subsidiaries closed a $165 million secured term loan facility with Cortland Capital Market Services as administrative agent.
CL Fertilizers Holding and funds managed by BlackRock Financial Management and its affiliates, among others, participated as lenders on the transactions.
At closing, $89.961 million in Itafos outstanding unsecured promissory notes and all interest accrued thereon were either converted into loans constituting part of the agreement and/or prepaid, in whole or in part. The net proceeds of the term loan facility will fund working capital and other cash requirements of Itafos Conda and Itafos Arraias, along with other general corporate purposes.
Other terms of the agreement include:
- A term of four years commencing on the closing with a bullet repayment schedule subject to certain prepayment rights and requirements and applicable prepayment penalties
- Interest at a per annum rate of 10% commencing on the closing until 18 months following the closing with 50% payable in cash and 50% payable in kind and 12% thereafter with 75% payable in cash and 25% payable in kind
- Issuance of bonus shares to the lenders in an aggregate amount of 2,750,000 on closing
- Other terms, fees and cost reimbursements standard and customary for similar agreements
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Itafos produces phosphate-based fertilizers and specialty products, with a portfolio of long-term strategic businesses located in key fertilizer markets worldwide. Itafos Conda produces approximately 540,000 tons of mono-ammonium phosphate, super phosphoric acid, merchant grade phosphoric acid and specialty products per year, while Itafos Arraias produces 500,000 tons of single super phosphate per year.
