SIOUX CITY, Iowa, Oct. 3 /PRNewswire/ -- Terra Industries Inc. (NYSE: TRA)
announced today that its subsidiary, Terra Capital, Inc., will issue on
October 10, 2001, $200 million of 12.875% senior secured notes due in 2008.
The notes will be priced at 99.43% to yield 13%. Terra Capital will also
enter into a $175 million amended and restated senior secured revolving credit
facility maturing in 2005. Terra will use the proceeds of the offering
together with drawings under its new credit facility to repay $259.4 million
of existing debt that was payable in 2003.
The new $175 million credit facility, which will be secured by Terra's
receivables and inventories, will permit Terra after June 2002, to use up to
$75 million per year of excess cash flows, as defined, to purchase its 10.5%
Senior Notes due in 2005 and/or Terra Nitrogen Company, L.P. common units.
Terra Industries Inc., with 2000 revenues of $1 billion, is a leading
international producer of nitrogen products and methanol.
This press 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 and,
outside the U.S., in accordance with Regulation S under the Securities Act of
1933, as amended (the "Securities Act"). None of the senior secured notes
have been registered under 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 press release contains forward-looking statements, which involve
inherent risks and uncertainties. These statements relate to the issuance of
securities and the closing of our new credit facility. These statements are
based on current plans; however, the closing of each of these transactions is
subject to customary closing conditions. Terra 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 , and by fax at no charge by calling
800-758-5804, code 437906.
SOURCE Terra Industries Inc.
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