Compass Minerals Closes on New Term Loan to Finance Expected Purchase of Remaining Interest in Produquímica
September 28 2016 - 4:04PM
Business Wire
Compass Minerals (NYSE: CMP), a leading essential minerals
company, announced today that it has issued a new $450 million
senior secured term loan, which matures July 1, 2021, and carries
an interest rate of LIBOR plus 2 percent.
Compass Minerals intends to use the proceeds from the new debt
to purchase the remaining 65 percent equity in Produquímica
Indústria e Comércio S.A. (Produquímica) and retire a portion of
the debt it expects to assume from Produquímica at closing. Based
in São Paulo, Brazil, Produquímica is one of Brazil’s leading
manufacturers and distributors of specialty plant nutrients.
“The attractive fundamentals of Compass Minerals’ unique
portfolio of businesses and our history of strong cash flow
generation continue to enable us to access low-cost capital,” said
Matthew Foulston, Compass Minerals’ chief financial officer. “With
this financing in place, we expect to acquire the remainder of
Produquímica as planned in early October 2016.”
About Compass Minerals
Compass Minerals is a leading provider of essential minerals
that solve nature’s challenges, including salt for winter roadway
safety and other consumer, industrial and agricultural uses, and
specialty plant nutrition minerals that improve the quality and
yield of crops. Named one of Forbes’ 100 Most Trustworthy Companies
in America in 2015 and 2016, Compass Minerals’ mission is to be the
best essential minerals company by delivering where and when it
matters. The company produces its minerals at locations throughout
the U.S. and Canada and in the U.K. For more information about
Compass Minerals and its products, please visit
www.compassminerals.com.
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including without limitation statements about the expected
acquisition of the remaining Produquímica equity and the timing of
the closing date and retirement of debt. The company uses words
such as “may,” “would,” “could,” “should,” “will,” “likely,”
“expect,” “anticipate,” “believe,” “intend,” “plan,” “forecast,”
“outlook,” “project,” “estimate” and similar expressions suggesting
future outcomes or events to identify forward-looking statements or
forward-looking information. These statements are based on the
company’s current expectations and involve risks and uncertainties
that could cause the company’s actual results to differ materially.
The differences could be caused by a number of factors, including
the risk that regulatory approvals required for the purchase are
not obtained, the risk that the proposed full ownership acquisition
of Produquímica could disrupt the plans and operations of the
company, Produquímica or both and the risk that the company may not
realize the expected financial and other benefits from the proposed
acquisition. For further information on risks and uncertainties
that may affect the company’s business, see the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections of the company’s Annual Report on
Form 10-K for the year ended December 31, 2015 and its Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2016 and June
30, 2016 filed with the SEC. The company undertakes no obligation
to update any forward-looking statements made in this press release
to reflect future events or developments. Because it is not
possible to predict or identify all such factors, this list cannot
be considered a complete set of all potential risks or
uncertainties.
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version on businesswire.com: http://www.businesswire.com/news/home/20160928006094/en/
Compass MineralsInvestor ContactTheresa L. Womble,
+1-913-344-9362Director of Investor
Relationswomblet@compassminerals.comorMedia ContactTara
Hart, +1-913-344-9319Manager of Corporate
AffairsMediaRelations@compassminerals.com
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