Royster-Clark reaches verbal agreement with banks on $225 million loan

By Sara Rosenberg

New York, Aug. 15 - Royster-Clark Inc. has reached an agreement with a consortium of banks for a new $225 million credit facility, according to a filing with the Securities and Exchange Commission. The banks are currently in the due diligence stage of the transaction.

Under the third amendment to the existing revolver, the company was required to obtain a commitment for a new credit facility by Sept. 30.

"We're very hopeful that by Sept. 30 there will be a signed agreement in hand," a company spokesman told Prospect News on Thursday.

The new facility would replace the company's existing $205 million senior secured credit facility, which is slated to expire in April 2004.

As of June 30, the company had $176.1 million drawn under the existing facility.

Royster-Clark is a New York fertilizer, seed, crop protection and agronomic services company.

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