Intrepid Potash Inc. to Issue $150 Million of Senior Notes
Intrepid Potash Inc. (Intrepid) (NYSE:IPI) announced today that it has
agreed to issue $150 million aggregate principal amount of unsecured
senior notes (the 'Notes?) in the following series:
$60 million of 3.23% Senior Notes, Series A, due April 16, 2020
$45 million of 4.13% Senior Notes, Series B, due April 14, 2023
$45 million of 4.28% Senior Notes, Series C, due April 16, 2025
The Notes are expected to be issued on April 16, 2013. The Notes were
offered to institutional investors in a private placement exempt from
registration under the Securities Act of 1933, as amended.
The weighted average term of the Notes is 9.4 years and the weighted
average coupon is 3.9%, reflecting the historically low interest rate
environment for long-term financing. Intrepid intends to use the net
proceeds from the issuance primarily to support general corporate
purposes, including capital investments to grow production of
incremental low-cost tons, and potential investments that complement its
strategy and grow its business. Intrepid is committed to continuing its
strategy of increasing potash production, decreasing per ton operating
costs, and leveraging its multi-decade reserves.
This press release does not constitute an offer to sell, or the
solicitation of an offer to buy, securities. The Notes have not been,
and will not be, registered under the Securities Act of 1933, as
amended, or the state securities laws of any other jurisdiction and may
not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
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Intrepid routinely posts information about Intrepid on its website under
the Investor Relations tab. Intrepid's website address is www.intrepidpotash.com.
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This document contains forward-looking statements - that is, statements
about future, not past, events. The forward-looking statements in this
document often relate to our future performance and management's
expectations for the future, including statements about our financial
outlook. These statements are based on assumptions that we believe are
reasonable. Forward-looking statements by their nature address matters
that are uncertain. For us, the particular uncertainties that could
cause our actual results to be materially different from our
forward-looking statements include the following:
changes in the price, demand, or supply of potash or Trio ?/langbeinite
circumstances that disrupt or limit our production, including
operational difficulties or operational variances due to geological or
geotechnical variances
interruptions in rail or truck transportation services, or
fluctuations in the costs of these services
increased labor costs or difficulties in hiring and retaining
qualified employees and contractors, including workers with mining or
construction expertise
the costs of, and our ability to successfully construct, commission
and execute, our strategic projects, including the development of our
HB Solar Solution mine, the further development of our langbeinite
recovery and granulation assets, and our North granulation plant
adverse weather events, including events affecting precipitation and
evaporation rates at our solar solution mines
changes in the prices of raw materials, including chemicals, natural
gas, and power
the impact of federal, state, or local government regulations,
including environmental and mining regulations, the enforcement of
those regulations, and government policy changes
our ability to obtain any necessary government permits relating to the
construction and operation of assets
changes in our reserve estimates
competition in the fertilizer industry
declines in U.S. or world agricultural production
declines in the use of potash products by oil and gas companies in
their drilling operations
changes in economic conditions
our ability to comply with covenants in our debt-related agreements to
avoid a default under those agreements
disruption in the credit markets
our ability to secure additional federal and state potash leases to
expand our existing mining operations
the other risks and uncertainties described in our periodic filings
with the U.S. Securities and Exchange Commission
All information in this document speaks as of August 28, 2012. New
information or events after that date may cause our forward-looking
statements in this document to change. We have 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.
Intrepid Potash Inc.
William Kent, 303-296-3006