Terra Capital tenders for 12?% notes, 11½% notes

By Jennifer Chiou

New York, Jan. 11 - Terra Industries Inc.'s Terra Capital, Inc. subsidiary announced the start of a cash tender offer for any and all of its $331.3 million combined of 12 7/8% senior secured notes due 2008 and 11½% second-priority senior secured notes due 2010.

The company is also soliciting consents to amend the note indentures to eliminate most of the restrictive covenants and certain events of default.

The consent deadline is 5 p.m. ET on Jan. 24 and the offer ends at midnight ET on Feb. 7.

Pricing will be set at 2 p.m. ET on Jan. 25.

The payouts will be determined using a fixed spread of 50 basis points plus the yield to maturity of the 3.125% Treasury due Oct. 15, 2008 for the 12 7/8% notes and the 3½% Treasury due May 31, 2007 for the 11½% notes.

Those who tender prior to the early deadline will receive a $20.00 consent payment that is already included in the payout.

Terra Capital added it intends to fund the offer with debt financing.

The tender offer is conditioned upon sufficient financing as well as a minimum tender condition.

Global Bondholder Services Corp. is the depositary and information agent (866 540-1500 or call collect 212 430-3774). Citigroup Corporate and Investment Banking, Liability Management Group is the dealer manager (800 558-3745 or call collect 212 723-6106).

Based in Sioux City, Iowa, Terra Industries produces nitrogen products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.