Iowa Fertilizer exchanges $147 million of 2013 bonds, obtains waivers

By Tali Rackner

Norfolk, Va., Nov. 28 – OCI NV announced the completion of the previously announced consent solicitation and exchange offer for subsidiary Iowa Fertilizer Co.’s series 2013 Midwestern disaster area revenue bonds issued through the Iowa Finance Authority.

Under the exchange offer, the company issued new series 2016 bonds maturing in December 2026 and December 2027 in exchange for $147 million principal amount of series 2013 bonds maturing in December 2019.

The new 2016 bonds were priced at 5.875% and are interest-only until 2026.

OCI said the amendments and exchange will give Iowa Fertilizer more flexibility going forward and will reduce its third-party debt obligations over the next 18 months by $142 million, providing a significantly improved liquidity profile as the facility begins operations.

In addition, Iowa Fertilizer obtained various other consents, including the removal of a change-of-control default clause, certain waivers to enter into a settlement and acceleration agreement with its engineering, procurement and construction contractor and allowing for an increase in the allowed working capital credit facility to $50 million from $30 million.

Citigroup Global Markets Inc. was the dealer manager for the consent solicitation. Globic Advisors was the information and tabulation agent.

OCI is a Geleen, Netherlands-based nitrogen-based fertilizer producer and engineering and construction contractor. It is the ultimate parent of Iowa Fertilizer.

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