Le Lézard
Classified in: Business

Itafos Announces Debt Refinancing Extending Maturity and Reducing Cost of Debt

HOUSTON, Sept. 22, 2022 (GLOBE NEWSWIRE) -- Itafos Inc. (TSXV: IFOS) ("Itafos" or the "Company") announced today that it has entered into credit facilities (the "Credit Facilities") with a syndicate of lenders led by RBC Capital Markets, as sole bookrunner and sole lead arranger, pursuant to which the lenders have advanced an US$85 million term loan (the "Term Loan") to the Company and made available a US$35 million letter of credit facility (the "LC Facility") and an US$80 million asset-based revolving credit facility (the "ABL Facility"). Together, the new Credit Facilities will provide Itafos with enhanced financial flexibility, a non-dilutive source of capital as well as the ability to refinance its existing debt.

"The refinancing announced today represents the achievement of another important strategic milestone for the Company. The new debt facilities will improve the company's financial performance because of the significantly reduced interest rates and creates more flexibility for funding of the long-term growth of the business," said G. David Delaney, Chief Executive Officer of Itafos.

The key terms of the Term Loan and LC Facility are set out below:

The key terms of the ABL Facility are set out below:

The Term Loan, LC Facility and ABL Facility are subject to customary conditions precedent, representations and warranties, financial and other covenants, and events of default.

The proceeds of the Term Loan and ABL Facility will be used to refinance the Company's indebtedness under the existing term loan from Oaktree Capital Management, L.P., which carried an interest rate of 8.25% per annum + LIBOR, the Company's existing revolving credit agreement from JPMorgan Chase Bank, N.A., and under the promissory note issued to CL Fertilizers Holding LLC, which had an interest rate of 18% per annum that was payable in kind. The refinancing provides for the retiring of all related party debt. Proceeds from the ABL facility will also be used for working capital and general corporate purposes.

Upon closing the refinancing, the Term Loan will have an outstanding balance of US$85.0 million, the ABL Facility will have an outstanding balance of US$65.0 million, and US$32.8 million will be outstanding under the LC Facility.

About Itafos

The Company is a phosphate and specialty fertilizer company. The Company's businesses and projects are as follows:

In addition to the businesses and projects described above, the Company also owns Paris Hills (Idaho, US) and Mantaro (Junin, Peru), which are phosphate mine projects that are in process of being wound down.

The Company is a Delaware corporation that is headquartered in Houston, TX. The Company's shares trade on the TSX Venture Exchange ("TSX-V") under the ticker symbol "IFOS". The Company's principal shareholder is CL Fertilizers Holding LLC ("CLF"). CLF is an affiliate of Castlelake, L.P., a global private investment firm.

For more information, or to join the Company's mailing list to receive notification of future news releases, please visit the Company's website at www.itafos.com.

Forward-Looking Information

Certain information contained in this news release constitutes forward-looking information, including statements with respect to the use of proceeds from the Term Loan and ABL Facility and the potential impact of the transactions on the Company's financial performance. All information other than information of historical fact is forward-looking information. The use of any of the words "intend", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "should", "would", "believe", "predict" and "potential" and similar expressions are intended to identify forward-looking information. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. No assurance can be given that this information will prove to be correct and such forward-looking information included in this news release should not be unduly relied upon.

Forward-looking information is subject to a number of risks and other factors that could cause actual results and events to vary materially from that anticipated by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to, those risk factors set out in the Company's annual information form and other disclosure documents available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.itafos.com. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions are not exhaustive. The forward-looking information included in this news release is expressly qualified by this cautionary statement and is made as of the date of this news release. The Company undertakes no obligation to publicly update or revise any forward-looking information except as required by applicable securities laws.


For further information, please contact:

Itafos Investor Relations

These press releases may also interest you

at 18:10
Brookfield Reinsurance ("Brookfield Reinsurance" or the "Company") today announced that it has completed the previously announced special distribution (the "Special Distribution") of shares of Brookfield Asset Management Ltd. (the "Manager shares")...

at 18:05
Brookfield Corporation (the "Corporation") and Brookfield Asset Management Ltd. (the "Manager") today jointly announced the completion of the public listing and distribution of a 25% interest in the Corporation's asset management business, through...

at 18:00
The San Francisco employment law attorneys, at Blumenthal Nordrehaug Bhowmik De Blouw LLP, filed a class action lawsuit against St. Joseph Health Northern California, LLC, alleging the company violated the California Labor...

at 17:50
ThreeD Capital Inc. ("ThreeD" or the "Company") , a Canadian-based venture capital firm focused on opportunistic investments in companies in the junior resources and disruptive technologies sectors, is pleased to announce that on December 9, 2022,...

at 17:45
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Core Scientific, Inc. between January 3, 2022 and October 26, 2022, both dates inclusive (the "Class Period"), of the important January 13, 2023 lead...

at 17:43
S&P Dow Jones Indices ("S&P DJI"), the world's leading index provider, today announced the results of the annual Dow Jones Sustainability Indices (DJSI) rebalancing and reconstitution. The DJSI are float-adjusted market capitalization weighted...

News published on 22 september 2022 at 09:10 and distributed by: