Royster-Clark begins refinancing efforts early to allow room for negotiations

By Sara Rosenberg

New York, Nov. 14 - Royster-Clark Inc. has begun the process of securing a new credit facility to replace the existing one that expires in April 2004. By beginning the process early, the company anticipates having more room in negotiating favorable terms, according to a filing with the Securities and Exchange Commission.

"Based on specific preliminary proposals received from capable financial institutions, we believe that we will be successful in replacing the current facility in either the first or second quarter of 2003 with a new facility expiring in 2006," the filing said.

At June 30, the company reported the possibility of non-compliance with covenants at Sept. 30. However, the company did meet its covenant requirements and expects to continue to be in compliance at the end of the current year.

"Looking further ahead, based on seasonal losses often experienced in the first quarter, it is possible that we will fall short of certain requirements as of March 31, 2003," the filing added.

Royster-Clark is a New York, N.Y. producer of fertilizer and crop-protection products.

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