Intrepid Potash entered into a new revolving credit agreement with Bank of Montreal, which provides additional borrowing capacity of up to $35 million, subject to a borrowing base limitation. The company also amended the terms of its senior notes with its noteholders.

“We are grateful for the thoughtfulness and dedication exhibited by our lending partners throughout these negotiations and to all of our stakeholders for their patience as we worked towards this resolution of our debt covenant issues,” said Bob Jornayvaz, Intrepid’s executive chairman, president and CEO. “This amendment and the new credit facility provide us with added financial flexibility and time to execute on our strategic plan as we continue transforming our business model during this down cycle in the fertilizer market.”

The revolving credit facility initially bears interest at a rate based upon LIBOR+2%. Beginning May 31, 2017, the facility will bear interest at LIBOR plus a margin, which ranges from 1.75% to 2.25% and adjusts monthly based on average availability under the credit agreement. The credit agreement is secured by a first lien on Intrepid’s current assets and a second lien, behind the noteholders, on Intrepid’s other assets. The facility expires on October 31, 2018.

Denver-based Intrepid Potash is the only U.S. producer of muriate of potash and supplied approximately 9% of the country’s annual consumption in 2015.