Itafos closed a definitive credit and guaranty agreement with a syndicate of lenders to provide a $165 million secured term loan facility to fund working capital and other cash requirements of the Arraias Phosphate Operations and the Conda Phosphate Operations. Cortland Capital Market Services served as administrative agent.
The key terms of the agreement are:
- 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
- Secured by Itafos’ direct and indirect interest in the guarantors and other assets of Itafos and the guarantors
- Issuance of bonus shares to the lenders in an aggregate amount of 2,750,000 upon the closing
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Toronto-based Itafos is a phosphate-based fertilizer and specialty products company.
