Itafos unit closes $20M (U.S.) working capital facility ITAFOS ANNOUNCES REFINANCING OF US$20,000,000 SECURED WORKING CAPITAL FACILITY AT ITAFOS CONDA
Itafos's wholly owned subsidiary, Itafos Conda LLC, has closed a $20-million (U.S.) secured working capital facility with JPMorgan Chase Bank NA, which refinanced the $20-million (U.S.) secured working capital facility with Gavilon Fertilizer LLC.
"The refinancing of our working capital facility lowers our cost of capital and provides a long-term solution to working capital management," said George Burdette, CFO of Itafos.
The Revolving Facility considers a commitment to loan up to US$20,000,000, of which US$10,000,000 was drawn at closing. The proceeds of the Revolving Facility will initially be used to repay the Gavilon Facility and thereafter for working capital and general purposes. The Revolving Facility bears interest at a variable rate tied to LIBOR, with an effective rate ranging from approximately 3-4% per annum on drawn amounts and 0.375% per annum on undrawn committed amounts. The Revolving Facility has a maturity of three years, which can be extended by agreement of the parties. The Revolving Facility will be secured by the accounts receivable, inventory and cash of Itafos Conda. In connection with closing the Revolving Facility, Itafos Conda is subject to other terms, fees and cost reimbursements standard and customary for similar agreements.
In addition to the Revolving Facility, JPMorgan Chase Bank, N.A. provides various banking services to the Company and Itafos Conda.
About Itafos
The Company is a pure play phosphate and specialty fertilizer platform with an attractive portfolio of strategic businesses and projects located in key fertilizer markets, including North America, South America and Africa.
The Company's businesses and projects are as follows:
Itafos Conda -- a vertically integrated phosphate mine and fertilizer business with production and sales capacity of approximately 550kt per year of monoammonium phosphate ("MAP"), MAP with micronutrients ("MAP+"), superphosphoric acid ("SPA"), merchant grade phosphoric acid ("MGA") and ammonium polyphosphate ("APP") located in Idaho, US;
Itafos Arraias -- a vertically integrated phosphate mine and fertilizer business with production and sales capacity of approximately 500kt per year of single superphosphate ("SSP"), SSP with micronutrients ("SSP+") and approximately 40kt per year of excess sulfuric acid located in Tocantins, Brazil;
Itafos Farim -- a high-grade phosphate mine project located in Farim, Guinea-Bissau;
Itafos Paris Hills -- a high-grade phosphate mine project located in Idaho, US;
Itafos Santana -- a vertically integrated high-grade phosphate mine and fertilizer plant project located in Para, Brazil;
Itafos Mantaro -- a phosphate mine project located in Junin, Peru; and
Itafos Araxa -- a vertically integrated rare earth elements and niobium mine and extraction plant project located in Minas Gerais, Brazil.