SIOUX CITY, Iowa, June 9 /PRNewswire/ -- Terra Nitrogen Company, L.P.
(NYSE: TNH) (TNCLP) has announced that its participation in an accounts
receivable securitization facility will not be renewed beyond its current
three-year term ending August 20, 1999. The facility was made possible
through Terra Industries Inc. (Terra), general partner of TNCLP, who has
indicated it will not extend the arrangement's term. Terra's sale of its
Distribution business, expected to close on June 30, 1999, will result in a
significant reduction in eligible accounts receivable, eliminating the
availability of the program.
In 1996, when TNCLP entered into the accounts receivable securitization
program, unitholders received cash distributions of $0.61 per limited
partnership unit in connection with cash flows generated under the facility.
Upon termination of the facility, TNCLP will be required to repurchase
previously securitized accounts receivable, which will reduce future cash
distributions.
As a result of cash needs to repurchase accounts receivable and lower
nitrogen prices than in 1998, TNCLP management believes it is unlikely the
partnership will generate any Available Cash for distributions to unitholders
during 1999.
TNCLP is one of the largest U.S. manufacturers and marketers of nitrogen
fertilizer products.
Note: Terra Nitrogen's news releases are available by fax at no charge by
calling 800-758-5804, code 106067.
This news release contains forward-looking statements. Such statements
involve risks and uncertainties and should be considered along with the
factors affecting our business as discussed on pages 5 and 6 in the 1998
annual report to unitholders
SOURCE Terra Nitrogen Company, L.P.
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Company News On-Call:
http://www.prnewswire.com/comp/106067.html or fax,
800-758-5804, ext. 106067
CONTACT:
Paula C. Norton of Terra Nitrogen Company,
L.P., 712-277-5438
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