Intrepid Potash cuts facility to $85 million, waives covenants awhile

By Wendy Van Sickle

Columbus, Ohio, March 24 – Intrepid Potash, Inc. reduced borrowing capacity to $85 million from $150 million permanently and temporarily waived the leverage ratio and fixed-charge coverage ratio covenants under the credit agreement as well as the purchase agreement for its $150 million of senior notes, according to an 8-K filing with the Securities and Exchange Commission.

The Tuesday amendment to the credit agreement dated Aug. 3, 2011 with U.S. Bank NA as administrative agent waives the following until May 13:

• The requirement that Intrepid comply with the financial covenants relating to its leverage ratio and fixed charge coverage ratio for the quarter ending March 31, with it also being agreed that any noncompliance with these covenants for that quarter will not constitute a default or event of default under the facility until May 13; and

• The requirement that Intrepid deliver audited annual financial statements for fiscal year 2015 without any going-concern modifier, with it also being agreed that the existence of audited annual financial statements for fiscal year 2015 with a going-concern modifier will not constitute a default or event of default until May 13.

The credit facility continues to mature on Aug. 28, 2020.

The company simultaneously entered into a waiver of its leverage ratio and fixed charge coverage ratio covenants for the same period under its note purchase agreement dated Aug. 28, 2012.

The company has three series of outstanding notes, including $60 million of 3.23% series A notes due April 16, 2020; $45 million of 4.13% series B notes due April 14, 2023; and $45 million of 4.28% series C notes due April 16, 2025.

Intrepid is a Denver-based producer and marketer of potash.

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