Terra Industries amends loan, permitting new debt and note repurchase

By Sara Rosenberg

New York, Oct. 13 - Terra Industries Inc. amended its credit facility, allowing it to obtain $600 million of new debt financing before Dec. 31 and to repurchase 7% senior notes due 2017, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

In addition, the amendment increased the unused fee by 25 basis points and revised pricing.

The amendment also increases the amount of permitted annual capital expenditures and cash investments in joint ventures to $90 million from $75 million, permits the payment of a special cash dividend of about $750 million to shareholders and provides for a separate allowance for joint venture investments of up to $320 million.

The amendment was completed on Oct. 9.

Also on Oct. 9, Terra Nitrogen LP amended its credit facility, providing that the borrowing base will be measured monthly instead of weekly.

Terra Industries is a Sioux City, Iowa-based producer and marketer of nitrogen and methanol products for agricultural and industrial markets.

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