Terra Capital $200 mln seven-year senior secured notes yield 13%

By Paul A. Harris

St. Louis, Mo., Oct. 3 - Terra Capital, Inc.'s priced $200 million senior secured notes due Oct. 15, 2008 (B3/BB) to yield 13%, according to a source familiar with the deal. That was at the high end of the 12½% area circulated talk on Tuesday. Salomon Smith Barney was bookrunner, Credit Suisse First Boston co-managed.

Terra Capital's parent, Terra Industries, Inc., a Sioux City, Iowa producer of nitrogen and methanol products, will use proceed to repay its 10¾% notes due 2003 and bank debt.

Issuer: Terra Capital, Inc.

Book manager: Salomon Smith Barney

Co-manager: Credit Suisse First Boston

Amount: $200 million

Maturity: Oct. 15, 2008

Coupon: 12 7/8%

Price: 99.43

Yield: 13%

Call: Non-callable with a make-whole call

Settlement: Oct. 10, 2001 flat

Ratings: Moody's B3

Standard & Poor's BB-

Cusip: 88089PAA1

End

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