SIOUX CITY, Iowa, June 27 /PRNewswire-FirstCall/ --
Terra Industries Inc. (NYSE: TRA) reported today that it has amended its
bank credit facility maturing on June 30, 2005.
The credit facility amendment removes the required minimum level of
earnings before interest, income taxes, depreciation, amortization and other
non-cash items (EBITDA) as long as Terra's borrowing availability under the
facility is $60 million or more. Borrowing availability equals cash and a
portion of accounts receivable and inventories, less outstanding letters of
credits and borrowings under the facility. Terra expects its borrowing
availability at June 30, 2002, to approximate $95 million.
If Terra's borrowing availability falls below $60 million, it is required
to have achieved minimum EBITDA of $60 million during the most recent four
quarters.
Michael L. Bennett, Terra's President and CEO, commented, "This amendment
better recognizes Terra's long-term financial position and provides us more
operating flexibility.
"Continued brisk demand for our products has allowed us to operate our
plants at about normal rates this year. While we are concerned about current
North American natural gas prices, the overall environment for Terra is much
improved from a year ago, in that U.S. nitrogen producer inventories are
considerably lower than they were and the new farm bill encourages corn
production and supports farmers' incomes."
Terra Industries Inc., with 2001 revenues of $1 billion, is a leading
international producer of nitrogen products and methanol.
Information contained in this release, other than historical information,
may be considered forward-looking. Forward-looking information reflects
Management's current views of future events and financial performance that
involve a number of risks and uncertainties. The factors that could cause
actual results to differ materially include, but are not limited to, the
following: changes in financial markets, general economic conditions within
the agricultural industry, competitive factors and price changes (principally,
sales prices of nitrogen and methanol products and natural gas costs), changes
in product mix, changes in the seasonality of demand patterns, changes in
weather conditions, changes in agricultural regulations, and other risks
detailed in the "Factors That Affect Operating Results" section of Terra's
current annual report.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com , and by fax at no charge by calling
800-758-5804, code 437906.
SOURCE Terra Industries Inc.
 back to top
Related links:
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/comp/437906.html
CONTACT:
Mark Rosenbury of Terra Industries Inc.,
+1-712-279-8756, or mrosenbury@terraindustries.com
|
