IMC Global amends credit agreements

New York, Dec. 19 - IMC Global Inc. said it amended its $500 million credit facility to ease covenants over the coming years.

In addition to relaxing covenants, the amendments also took into account the recent sale of the company's salt business and expanded provisions allowing use of some of the salt business proceeds to terminate a facility lease.

"Our renegotiated credit facilities give IMC Global enhanced financial flexibility and position us well as we continue to strengthen our balance sheet and look toward improved results in 2002 and beyond," said Douglas A. Pertz, Chairman, president and chief executive officer of IMC Global, in a news release. "These amendments are a logical and very positive step following our recent sales ofthe Salt and Ogden businesses for about $640 million, including approximately $600 million of cash, and the Australian soda ash business for $43 million."

Using proceeds from the asset sales, IMC Global said it had paid off borrowings under its revolving credit facility. As previously announced, it has also begun a tender for its $300 million of outstanding 7.40% notes due November 2002.

The Lake Forest, Ill. fertilizer company has its credit facility with JP Morgan Chase Bank as administrative agent and Goldman Sachs Credit Partners LP as syndication agent. It took out the facility in May 2001 and completed three amendments in November and December.

IMC Global paid a 25 basis points amendment fee for the changes, according to a document filed with the Securities and Exchange Commission.

The revised covenants set new requirement for interest expense coverage and leverage. Interest expense coverage is defined as consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) to consolidated interest expense and is a minimum, measured at the end of any four consecutive quarters. The leverage ratio is measured on the last day of each quarter.

Period Interest Coverage

To Dec. 31, 2001 1.95:1.00

Jan. 1, 2002 to Sept. 30, 2002 1.50:1.00

Oct. 1, 2002 to Dec. 31, 2002 1.75:1.00

Jan. 1, 2003 to June 30, 2004 2.00:1.00

July 1, 2004 to Sept. 30, 2004 2.25:1.00

Oct. 1, 2004 and thereafter 2.50:1.00

Period Leverage

To Dec. 31, 2001 6.50:1.00

Jan. 1, 2002 to March 31, 2002 7.50:1.00

April 1, 2002 to June 30, 2002 7.75:1.00

July 1, 2002 to Sept. 30, 2002 7.50:1.00

Oct. 1, 2002 to Dec. 31, 2002 6.85:1.00

Jan. 1, 2003 to March 31, 2003 6.50:1.00

April 1, 2003 to June 30, 2003 6.00:1.00

July 1, 2003 to Sept. 30, 2003 5.50:1.00

Oct. 1, 2003 to Dec. 31, 2003 5.25:1.00

Jan. 1, 2004 to March 30, 2004 5.00:1.00

April 1, 2004 to June 30, 2004 4.75:1.00

July 1, 2004 to Sept. 30, 2004 4.50:1.00

Oct. 1, 2004 and thereafter 4.00:1.00

End

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