Intrepid Potash Announces Debt Waiver Extension and Amendment
September 30 2016 - 9:44PM
DENVER; September 30, 2016 -
Intrepid Potash Inc. (NYSE: IPI) today announced that is has
obtained an extension to its previous waiver of certain covenants
under its senior notes until October 31, 2016. The previous
waiver was to expire on September 30, 2016.
"The extension of the waiver is intended to
provide additional time to complete definitive documentation for
the revised note terms as well as the terms of the previously
announced alternative credit facility," said Bob Jornayvaz,
Intrepid's Executive Chairman, President and CEO. "These
negotiations have been impacted by the complexity of the numerous
constituents involved and the evolving nature of the current potash
and langbeinite markets. We continue to negotiate for the benefit
of all parties involved and remain grateful to our note holders for
their continued active engagement in this process as we work
towards a definitive resolution."
In connection with the waiver and amendment, on
October 3, 2016, Intrepid is required to pay the noteholders $15.8
million, consisting of a $15 million principal payment and a $0.8
million negotiated make-whole payment resulting from early
retirement of the notes.
In July, Intrepid announced that it received a
commitment from a third party lender for a new credit facility,
subject to various conditions, and that commitment remains in
place. Intrepid's previous credit facility, which had a
borrowing capacity of $1 million to be used only for letters of
credit, expired in accordance with its terms on September 30,
2016.
Intrepid can make no assurance that the definitive
documentation relating to the senior notes and new credit facility
will be entered into by October 31, 2016 or at all.
About Intrepid
Intrepid Potash (NYSE: IPI) is the only U.S.
producer of muriate of potash and supplied approximately 9% of the
country's annual consumption in 2015. Potash is applied as an
essential nutrient for healthy crop development, utilized in
several industrial applications and used as an ingredient in animal
feed. Intrepid also produces a specialty fertilizer, Trio®,
which delivers three key nutrients, potassium, magnesium, and
sulfate, in a single particle.
Intrepid serves diverse customers in markets where
a logistical advantage exists; and is a leader in the utilization
of solar evaporation production, one of the lowest cost,
environmentally friendly production methods for potash. After
the idling of its West mine in July 2016, Intrepid's production
comes from three solar solution potash facilities and one
conventional underground Trio® mine.
Intrepid routinely posts important information,
including information about upcoming investor presentations and
press releases, on its website under the Investor Relations
tab. Investors and other interested parties are encouraged to
enroll on the Intrepid website, www.intrepidpotash.com to receive
automatic email alerts or Really Simple Syndication (RSS) feeds
regarding new postings.
Forward-looking
Statements
This document contains forward-looking statements
- that is, statements about future, not past, events. The
forward-looking statements in this document relate to, among other
things, statements about the timing and results of negotiations
relating to the Company's debt agreements. These statements
are based on assumptions that the Company believes are
reasonable. Forward-looking statements, by their nature,
address matters that are uncertain. The particular
uncertainties that could cause Intrepid's actual results to be
materially different from its forward-looking statements include
the following:
- the Company's ability to enter into acceptable
definitive documentation of its agreements relating to the senior
notes and new credit facility by October 31, 2016, or at all;
- the Company's ability to successfully adapt to
its new business model after the idling of the West facility and
the transition of the East facility to Trio®-only production;
- the Company's ability to comply with covenants
under its note purchase agreement, as amended, to avoid a
default under the notes;
- the Company's ability to come to an agreement
with its current and potential future lenders on definitive terms
for its debt-related agreements going forward;
- the Company's ability to secure an alternative
credit facility to provide for short-term liquidity needs;
- changes in the price, demand, or supply of potash
or Trio®/langbeinite;
- adverse impacts to the Company's business as a
result of its independent auditor having expressed substantial
doubt as to the Company's ability to continue as a going concern
due to the existence of a material uncertainty;
- the costs of, and the Company's ability to
successfully construct, commission, and execute, any of its
strategic projects;
- declines or changes in agricultural production or
fertilizer application rates;
- write-downs of the carrying value of the
Company's assets, including inventories;
- circumstances that disrupt or limit the Company's
production, including operational difficulties or variances,
geological or geotechnical variances, equipment failures,
environmental hazards, and other unexpected events or
problems;
- changes in the Company's reserve estimates;
- currency fluctuations;
- adverse changes in economic conditions or credit
markets;
- the impact of governmental regulations, including
environmental and mining regulations, the enforcement of those
regulations, and governmental policy changes;
- adverse weather events, including events
affecting precipitation and evaporation rates at the Company's
solar solution mines;
- increased labor costs or difficulties in hiring
and retaining qualified employees and contractors, including
workers with mining, mineral processing, or construction
expertise;
- changes in the prices of raw materials, including
chemicals, natural gas, and power;
- the Company's ability to obtain and maintain any
necessary governmental permits or leases relating to current or
future operations;
- declines in the use of potash products by oil and
gas companies in their drilling operations;
- interruptions in rail or truck transportation
services, or fluctuations in the costs of these services;
- the Company's inability to fund necessary capital
investments; and
- the other risks, uncertainties, and assumptions
described in the Company's periodic filings with the Securities and
Exchange Commission, including in "Risk Factors" in the Company's
Annual Report on Form 10-K for the year ended December 31,
2015.
In addition, new risks emerge from time to
time. It is not possible for the Company's management to
predict all risks that may cause actual results to differ
materially from those contained in any forward-looking statements
the Company may make.
All information in this document speaks as of the
date of this release. New information or events after that
date may cause our forward-looking statements in this document to
change. We undertake no duty to update or revise publicly any
forward-looking statements to conform the statements to actual
results or to reflect new information or future events.
Contact:
Brian Frantz, Senior Vice President and Chief Accounting
Officer
Phone: 303-996-3023
Email: brian.frantz@intrepidpotash.com
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Intrepid Potash Inc via Globenewswire
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