SIOUX CITY, Iowa, Oct. 15 /PRNewswire-FirstCall/ -- Terra Industries Inc.
(NYSE symbol: TRA) announced the closing of its private offering of $100
million of Series A cumulative convertible perpetual preferred shares. An
additional $20 million of the Series A preferred shares could be issued
pursuant to a 30-day option available to the initial purchasers.
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. 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 111/2% 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.
The statements above regarding the Company's intent with respect to the
use of proceeds of the offering 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,
+1-712-279-8756
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