SIOUX CITY, Iowa, Oct. 7 /PRNewswire-FirstCall/ -- Terra Industries Inc.
(NYSE: TRA) announced today that it intends to make a private offering of
$75 million of Series A cumulative convertible perpetual preferred shares
subject to market and other customary conditions. The preferred shares will be
convertible into Terra Industries Inc. common shares at a price to be
determined. The Company may also exchange the preferred shares for convertible
subordinated debentures. The Company intends to grant the initial purchasers
of the preferred shares a 30-day option to purchase up to an additional
$15 million of the preferred shares.
The Company intends to use the net proceeds of this offering to redeem up
to 35% of its existing 11 1/2% Second Priority Senior Secured Notes due 2010
and for general corporate purposes.
The preferred shares will be offered in the United States only to
qualified institutional buyers pursuant to Rule 144A under the Securities Act
of 1933. The preferred shares will not be registered under the Securities Act
and will not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the Securities Act.
Terra Industries Inc., with 2003 revenues of $1.4 billion, is a leading
international producer of nitrogen products.
References in this news release to the "Company" include subsidiaries and
affiliates as appropriate in the context.
The statements above regarding the Company's intent with respect to the
private offering and use of proceeds are forward-looking statements. Actual
results may differ materially from those reflected in these forward-looking
statements for a number of reasons, including the level of investor interest
in the offering and changes in the capital markets.
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 Inc.,
+1-712-279-8756
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