Fertilizer maker Itafos intends to issue a promissory note to borrow US$15 million in convertible unsecured subordinated debt from its majority shareholder CL Fertilizers Holding LLC, according to a Sept. 10 release.
The note bears annual interest at 15% and is payable within six months after the company repays its existing senior credit facility. Itafos will use the funds for general working capital and capital expenditure.
After Itafos raises at least US$7.5 million, the outstanding principal amount of the promissory note will be converted into company shares.
In June 2018, the company closed a four-year, US$165 million loan facility to develop its phosphate projects, including Paris Hills in the U.S., Farim in Guinea-Bissau, Santana in Brazil and Mantaro in Peru.
The company also owns the Conda operation in Idaho, as well as the Arraias and Araxa properties in Brazil.
CL Fertilizers owns a 60.32% stake in Itafos.
