Compass amends credit agreement for covenant relief, flexibility

By Wendy Van Sickle

Columbus, Ohio, March 27 – Compass Minerals International, Inc. amended its existing credit agreement for financial covenant relief in the near term and greater flexibility, according to a news release.

The company said the enhanced flexibility would span time and a broad range of operating scenarios.

“We appreciate the unanimous support of our bank group and their recognition of the need for temporary covenant relief given the combination of an exceptionally mild deicing season and trough-level plant nutrition earnings. Today’s amendment adjusts our financial covenants in a manner that we believe provides sufficient headroom both in the near term and along our path to deleveraging over the coming years,” Lorin Crenshaw, chief financial officer of Compass Minerals, said in the release.

“It occurs amid a recalibrated strategic focus aimed at strengthening our balance sheet and driving higher returns on capital through significant fixed cost reductions and lower capital intensity.”

Based in Overland Park, Kan., Compass Minerals, through its subsidiaries, produces salt, magnesium chloride, sulfate of potash and other plant nutrition products.

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