Today techs Itafos Broadcasts Debt Refinancing Extending Maturity and

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HOUSTON, Sept. 22, 2022 (GLOBE NEWSWIRE) — Itafos Inc. (TSXV: IFOS) (“Itafos” or the “Firm”) introduced at the moment that it has entered into credit score services (the “Credit score Services”) with a syndicate of lenders led by RBC Capital Markets, as sole bookrunner and sole lead arranger, pursuant to which the lenders have superior an US$85 million time period mortgage (the “Time period Mortgage”) to the Firm and made out there a US$35 million letter of credit score facility (the “LC Facility”) and an US$80 million asset-based revolving credit score facility (the “ABL Facility”). Collectively, the brand new Credit score Services will present Itafos with enhanced monetary flexibility, a non-dilutive supply of capital in addition to the power to refinance its present debt.

“The refinancing introduced at the moment represents the achievement of one other vital strategic milestone for the Firm. The brand new debt services will enhance the corporate’s monetary efficiency due to the considerably diminished rates of interest and creates extra flexibility for funding of the long-term development of the enterprise,” stated G. David Delaney, Chief Govt Officer of Itafos.

The important thing phrases of the Time period Mortgage and LC Facility are set out beneath:

  • The Time period Mortgage is secured by the belongings of the Firm and its US subsidiaries and can mature on September 22, 2025.
  • Curiosity shall accrue on excellent borrowings at a fee equal to Time period SOFR plus a margin starting from 4.25% to five.25% each year primarily based upon the whole internet leverage ratio of the Firm and its subsidiaries. The preliminary borrowings are at a fee of 4.25%.
  • The Time period Mortgage requires quarterly amortization funds and the Firm might make incremental prepayments of the time period mortgage borrowings with out penalty or premium.

The important thing phrases of the ABL Facility are set out beneath:

  • The ABL Facility will mature on September 22, 2025. It’s secured by the belongings of the Firm and its US subsidiaries and assured by sure of the Firm’s US subsidiaries.
  • Curiosity shall accrue on excellent borrowings at a fee equal to Time period SOFR plus a margin starting from 2.25% to 2.75% each year, primarily based upon the common extra availability below the ABL Facility.

The Time period Mortgage, LC Facility and ABL Facility are topic to customary situations precedent, representations and warranties, monetary and different covenants, and occasions of default.

The proceeds of the Time period Mortgage and ABL Facility might be used to refinance the Firm’s indebtedness below the prevailing time period mortgage from Oaktree Capital Administration, L.P., which carried an rate of interest of 8.25% each year + LIBOR, the Firm’s present revolving credit score settlement from JPMorgan Chase Financial today techs institution, N.A., and below the promissory notice issued to CL Fertilizers Holding LLC, which had an rate of interest of 18% each year that was payable in sort. The refinancing gives for the retiring of all associated celebration debt. Proceeds from the ABL facility may also be used for working capital and normal company functions.

Upon closing the refinancing, the Time period Mortgage may have an excellent stability of US$85.0 million, the ABL Facility may have an excellent stability of US$65.0 million, and US$32.8 million might be excellent below the LC Facility.

About Itafos

The Firm is a phosphate and specialty fertilizer firm. The Firm’s companies and initiatives are as follows:

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  • Conda – a vertically built-in phosphate fertilizer enterprise positioned in Idaho, US with manufacturing capability as follows:
    • roughly 550kt per today techs 12 months of monoammonium phosphate (“MAP”), MAP with micronutrients (“MAP+”), superphosphoric acid (“SPA”), service provider grade phosphoric acid (“MGA”) and ammonium polyphosphate (“APP”); today techs and
    • roughly 27kt per 12 months of hydrofluorosilicic acid (“HFSA”);
  • Arraias – a vertically built-in phosphate fertilizer enterprise positioned in Tocantins, Brazil with manufacturing capability as follows:
    • roughly 500kt per 12 months of single superphosphate (“SSP”) and SSP with micronutrients (“SSP+”); and
    • roughly 40kt per 12 months of extra sulfuric acid (220kt per 12 months gross sulfuric acid manufacturing capability);
  • Farim – a high-grade phosphate mine undertaking positioned in Farim, Guinea-Bissau;
  • Santana – a vertically built-in high-grade phosphate mine and fertilizer plant undertaking positioned in Pará, Brazil; and
  • Araxá – a vertically built-in uncommon earth parts and niobium mine and extraction plant undertaking positioned in Minas Gerais, Brazil.

Along with the companies and initiatives described above, the Firm additionally owns Paris Hills (Idaho, US) and Mantaro (Junin, Peru), that are phosphate mine initiatives which can be in technique of being wound down.

The Firm is a Delaware company that’s headquartered in Houston, TX. The Firm’s shares commerce on the TSX Enterprise Trade (“TSX-V”) below the ticker image “IFOS”. The Firm’s principal shareholder is CL Fertilizers Holding LLC (“CLF”). CLF is an affiliate of Castlelake, L.P., a worldwide personal funding agency.

For extra data, or to hitch the Firm’s mailing record to obtain notification of future information releases, please go to the Firm’s web site at www.itafos.com.

Ahead-Trying Info

Sure data contained on this information launch constitutes forward-looking data, together with statements with respect to using proceeds from the Time period Mortgage and ABL Facility and the potential influence of the transactions on the Firm’s monetary efficiency. All data apart from data of historic truth is forward-looking data. The usage of any of the phrases “intend”, “anticipate”, “plan”, “proceed”, “estimate”, “anticipate”, “might”, “will”, “undertaking”, “ought to”, “would”, “imagine”, “predict” and “potential” and comparable expressions are supposed to determine forward-looking data. This data includes recognized and unknown dangers, uncertainties and different elements which will trigger precise outcomes or occasions to vary materially from these anticipated in such forward-looking data. No assurance will be provided that this data will show to be right and such forward-looking data included on this information launch shouldn’t be unduly relied upon.

Ahead-looking data is topic to a lot of dangers and different elements that might trigger precise outcomes and occasions to differ materially from that anticipated by such forward-looking data. Though the Firm has tried to determine vital elements that might trigger precise outcomes to vary materially from these contained in forward-looking statements, there could also be different elements that trigger outcomes to not be as anticipated, estimated or supposed. Elements which will trigger precise outcomes to vary materially from anticipated outcomes described in forward-looking statements embody, however should not restricted to, these danger elements set out within the Firm’s annual data kind and different disclosure paperwork out there below the Firm’s profile on SEDAR at www.sedar.com and on the Firm’s web site at www.itafos.com. Readers are cautioned that the foregoing record of dangers, uncertainties and assumptions should not exhaustive. The forward-looking data included on this information launch is expressly certified by this cautionary assertion and is made as of the date of this information launch. The Firm today techs undertakes no obligation to publicly replace or revise any forward-looking data besides as required by relevant securities legal guidelines.

NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

For additional data, please contact:

Itafos Investor Relations
investor@itafos.com
www.itafos.com

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