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Itafos closes $205 million three-year term loan to refinance debt
Chicago, Aug. 25 – Itafos announced that it closed a three-year term loan for $205 million on Wednesday, according to a press release.
The term loan has an interest rate of Libor plus 825 basis points with a 1% Libor floor.
There is amortization of 15% per annum with principal payments payable on a quarterly basis and a one-time principal payment on or before 15 months after the closing date in an amount sufficient to reduce the outstanding principal balance to $155 million or less.
Lenders to the term loan include a syndicate of lenders comprised of certain funds and accounts managed by Oaktree Capital Management, LP.
Various subsidiaries of the company are guaranteeing the loan.
Proceeds from the term loan were used to repay an earlier credit facility.
Additionally, Itafos’ wholly-owned subsidiary Itafos Conda LLC amended its ABL to increase commitments to $40 million from $20 million and extend the term of the loan to the earliest of Aug. 25, 2024 or 91 days before the maturity of the term loan. The term had been set to mature on Aug. 7, 2023. Collateral was expanded from accounts receivable, inventory and cash pledged by Conda to include a second lien on all other assets of the company and guarantors. The loan was originally entered into with JPMorgan Chase on Aug. 7, 2020.
The company also amended a promissory note with CL Fertilizers Holding LLC. The commitment was reduced to $30.6 million from $36 million and the term was extended. Additionally, interest was increased to 18% from 15% starting after one year if the company has not paid at least $20 million by that date.
Itafos is Toronto-based producer of phosphate-based fertilizers and related products with near-term production and a portfolio of long-term strategic assets.
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