Itafos said June 6 that it closed a previously announced, four-year, US$165 million secured term loan facility from a syndicate of lenders.
Under the agreement, the phosphate producer will pay with a bullet repayment schedule, subject to certain prepayment rights and requirements and applicable prepayment penalties.
The loan carries an interest rate of 10% per annum up to 18 months after closing, with 50% payable in cash and 50% payable in kind. The interest rate will increase to 12% after the first 18 months, with 75% payable in cash and 25% payable in kind.
Following the deal's closing, CL Fertilizers Holding LLC, part of the syndicate of lenders that includes BlackRock Financial Management Inc. and its affiliates, will control about 57.7% of Itafos through a holding of 81,980,064 shares on an undiluted basis.
The money is earmarked for working capital, to cover other cash requirements of the Arraias phosphate operations in Brazil and the Conda phosphate operations in the U.S., and to develop other phosphate projects, including Paris Hills in the U.S. and Farim in Guinea-Bissau.
