Intrepid Announces Early Paydown of Series C Senior Notes
July 21 2020 - 7:00AM
Intrepid Potash Inc. (NYSE:IPI) (“Intrepid”) announced today it
paid down its Series C senior notes on July 17, 2020. Total payment
to Series C noteholders was $17.1 million, which included $15.0
million in remaining principal, a reduced make-whole payment, and
accrued interest. Intrepid made the payment entirely from cash on
hand. After the payment, Intrepid has approximately $14 million in
cash on hand, $30 million outstanding under its revolving credit
facility, $15 million remaining on its Series B senior notes due in
2023, and $10 million outstanding from the Paycheck Protection
Program. Intrepid has $44 million of availability remaining under
its $75 million credit facility. Intrepid has used the entire $10
million of its loan under the Paycheck Protection Program for
eligible payroll expenses and expects the majority, if not all, of
the loan will be forgiven.
“The early paydown of our Series C senior notes reduces our
effective interest rate and provides us with considerably more
flexibility with our remaining lenders to pursue our strategy of
expanding our oilfield solutions business in this period of unique
opportunity”, said Bob Jornayvaz, Intrepid’s Executive Chairman,
President, and CEO. “We appreciate our remaining lenders consent to
the paydown and their willingness to consider modifications to our
amended and restated note purchase agreement given the significant
reductions in principal over the past few years. We are also
fortunate to have $44 million available under our existing credit
facility at very favorable rates and a $75 million accordion
feature under our existing credit facility. The savings offered by
the favorable rates under our other facilities can more than offset
the reduced make-whole payment we negotiated with Series C holders
if we elect to utilize them in the future. We continue to prudently
manage our existing assets as well as review unique acquisition
opportunities through these challenging and uncertain times. We
remain optimistic about the long-term prospects of the prolific
Delaware Basin.”
About Intrepid:
Intrepid is a diversified mineral company that delivers
potassium, magnesium, sulfur, salt, and water products essential
for customer success in agriculture, animal feed, and the oil and
gas industry. Intrepid is the only U.S. producer of
muriate of potash, which is applied as an essential nutrient for
healthy crop development, utilized in several industrial
applications, and used as an ingredient in animal feed. In
addition, Intrepid produces a specialty fertilizer, Trio®, which
delivers three key nutrients, potassium, magnesium, and sulfate, in
a single particle. Intrepid also provides water, magnesium
chloride, brine, and various oilfield products and
services.Intrepid serves diverse customers in markets where a
logistical advantage exists and is a leader in the use of solar
evaporation for potash production, resulting in lower cost and more
environmentally friendly production. Intrepid's mineral 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
at intrepidpotash.com, to receive automatic email alerts for
new postings.
Forward-Looking Statements This press release
includes certain statements concerning expectations for the future
that are forward-looking within the meaning of the federal
securities laws. Forward-looking statements contain known and
unknown risks and uncertainties (many of which are difficult to
predict and beyond management's control) that may cause Intrepid’s
actual results in future periods to differ materially from
anticipated or projected results. Forward-looking statements in
this press release include, among others, statements regarding
Intrepid’s ability to execute on its strategy to expand its
oilfield solutions business, and its relationship with current
lenders. An extensive list of specific material risks and
uncertainties affecting Intrepid is contained in its Annual Report
on Form 10-K for the year ended December 31, 2019, and other
quarterly and current reports filed with the Securities and
Exchange Commission from time to time. Any forward-looking
statements in this press release are made as of the date of this
press release, and Intrepid undertakes no obligation to update or
revise any forward-looking statements to reflect
Contact: Matt Preston, Vice President of
FinancePhone: 303-996-3048Email:
matt.preston@intrepidpotash.com
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