Itafos announces amendment, extension of existing credit facilities

Itafos has entered into an amendment of its existing credit facilities with a syndicate of lenders led by RBC Capital Markets, pursuant to which the Company will refinance its existing $85 million loan and its $35 million letter of credit facility for a new commitment of $100 million and a $30 million letter of credit facility and will extend the maturity date under the Existing Term Loan Agreement The Company also announced that it has entered into an amendment to its revolving asset-based credit facility with a syndicate of lenders led by RBC Capital Markets to extend the maturity date of such facility and to effect certain other amendments to such facility. The key terms of the Amended Term Loan Agreement are set out below: Extension of maturity date to September 6, 2027. Term loan upsized from the original $85 million to $100 million. Dedicated letter of credit facility reduced from $35 million to $30 million. Annual principal amortization reduced from 33.33% to 10%. Further amendments to the facility that provide the Company greater flexibility and enhance its ability to distribute capital to shareholders. The key terms of the Amended ABL Agreement are set out below: Extension of maturity date to September 6, 2027. Enhancements to the facility that provide the company additional flexibility and capacity under the borrowing base calculation. The proceeds of the Amended Term Loan Agreement and Amended ABL Agreement are expected to be used to refinance the Company’s indebtedness under the Existing Term Loan Agreement, repayment of all outstanding ABL Borrowings, and for general corporate purposes. Upon closing the refinancing, the Amended Term Loan will have an outstanding balance of $100 million, the ABL Facility will be undrawn, and the LC Facility will have an outstanding balance of $12.5 million.