SIOUX CITY, Iowa, Oct. 8 /PRNewswire-FirstCall/ -- Terra Industries Inc.
(NYSE: TRA) announced the pricing of its private offering of $100 million of
Series A cumulative convertible perpetual preferred shares. The sale of the
preferred shares is expected to close on October 15, 2004. The Company also
granted the initial purchasers of the preferred shares a 30-day option to
purchase up to an additional $20 million of the preferred shares.
The preferred shares will pay dividends, in cash or common shares at the
Company's option, at a rate of 4.25% per annum. The preferred shares are
convertible into the Company's common shares at a conversion rate of 100.4016
common shares per preferred share, which is equivalent to an initial
conversion price of $9.96 per common share, subject to adjustment. On October
7, 2004, the reported closing price per common share on the NYSE was $8.30.
The Company may also exchange the preferred shares for convertible
subordinated debentures.
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 have not been registered under the Securities Act and
may not be offered or sold in the United States absent registration or an
applicable exemption from 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 general economic and political
conditions and changes in the financial 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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