SIOUX CITY, Iowa, May 13 /PRNewswire-FirstCall/ -- Terra Industries Inc.
(NYSE: TRA) intends to issue $200 million of Second Priority Senior Secured
Notes due 2010 through its principal subsidiary, Terra Capital, Inc. Terra
will use the proceeds of the offering to repay its existing 10.5% Senior Notes
due 2005.
The new notes will be secured by a second priority security interest in
certain domestic current assets and intellectual property of Terra Industries
Inc. and its subsidiaries and capital stock of certain of its subsidiaries.
The security interest will be second in priority to a first priority security
interest in the same assets in favor of the lenders under Terra's revolving
credit facility and will be shared equally and ratably with Terra's
outstanding 12-7/8% Senior Secured Notes due 2008.
Terra Industries Inc. makes this statement to be consistent with the
Securities and Exchange Commission's "fair disclosure" guidelines and in
advance of presentations to investors.
Terra Industries Inc., with 2002 revenues of $1 billion, is a leading
international producer of nitrogen products and methanol.
This news release does not constitute an offer to sell or the solicitation
of an offer to buy any of the senior secured notes or any other securities,
nor will there be any sale of the senior secured notes or any other securities
in any state in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such state.
The senior secured notes will be issued in reliance on the exemption from the
registration requirements provided by Rule 144A. None of the senior secured
notes have been registered under the Securities Act of 1933, as amended (the
"Securities Act"), and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of
the Securities Act and applicable state securities laws.
This news release may contain forward-looking statements, which involve
inherent risks and uncertainties. Statements that are not historical facts,
including statements about Terra Industries Inc.'s beliefs, plans or
expectations, are forward-looking statements. These statements are based on
current plans, estimates and expectations. Actual results may differ
materially from those projected in such forward-looking statements and
therefore you should not place undue reliance on them. A non-exclusive list of
the important factors that could cause actual results to differ materially
from those in such forward-looking statements is set forth in Terra Industries
Inc.'s most recent report on Form 10-K and Terra Industries Inc.'s other
documents on file with the Securities and Exchange Commission. Terra
Industries Inc. undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
developments or otherwise.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com .
SOURCE Terra Industries Inc.
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Related links:
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/comp/437906.html
CONTACT:
Mark Rosenbury of Terra Industries,
+1-712-279-8756
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