Itafos Secures $100 Million in Credit Facility Extensions

Itafos Enhances Financial Flexibility with Credit Facility Amendments

Itafos Inc. (TSX-V: IFOS) has recently made a strategic move by amending its credit facilities to bolster financial flexibility and liquidity. This update is crucial for the company's ongoing projects, particularly the H1/NDR initiative, which is on track to extend the operational life of the Conda mine through 2037. In collaboration with a group of lenders led by RBC Capital Markets, Itafos is refinancing an existing loan of $85 million and a letter of credit facility of $35 million, establishing a new financial commitment of $100 million and a $30 million letter of credit.

Strategic Commentary from Leadership

David Delaney, Chief Executive Officer of Itafos, expressed optimism about these amendments, stating, "The adjustments to our credit facilities equip the Company with enhanced financial flexibility during the developmental phase of the H1/NDR project. We have prioritized reducing our debt and increasing available liquidity over the past three years, which will support our ability to execute strategic initiatives and deliver value to our stakeholders."

Key Terms of the Amended Term Loan Agreement

The newly established terms under the Amended Term Loan Agreement showcase significant improvements:

• **Maturity Date:** The loan's maturity has been extended to September 6, 2027.
• **Loan Amount:** The term loan has been increased from $85 million to $100 million.
• **Letter of Credit Facility:** The dedicated facility has been adjusted from $35 million to $30 million.
• **Amortization Rates:** The annual principal amortization has been lowered from 33.33% to an easier 10%.
• **Flexibility Enhancements:** Additional amendments provide the Company with more leeway in capital distribution to shareholders.

Details of the Amended ABL Agreement

Alongside the term loan agreement, Itafos also announced an amendment to its revolving asset-based credit facility:

• **Maturity Date Extension:** This too has been extended to September 6, 2027.
• **Borrowing Flexibility:** Adjustments have been made to enhance the borrowing base calculation, allowing for greater financial maneuverability.

Use of Proceeds from the Agreements

The funds secured through these agreements will be allocated towards refinancing existing debts, repaying all outstanding ABL borrowings, and supporting general corporate purposes. Upon the completion of this refinancing, the outstanding balance on the Amended Term Loan will reach $100 million, while the ABL Facility will remain undrawn with a letter of credit facility carrying a balance of $12.5 million.

About Itafos

Itafos is recognized for its operations in the phosphate and specialty fertilizer industry, with various projects and businesses that include:

• Conda, Idaho: A fully integrated phosphate fertilizer operation capable of producing approximately 550kt per year of products like monoammonium phosphate (MAP) and superphosphoric acid.
• Arraias, Brazil: Another vertically integrated phosphate business focused on single superphosphate production, generating about 500kt annually.
• Farim, Guinea-Bissau: A high-grade phosphate mining project positioned for future growth.
• Santana, Brazil: An integrated phosphate mining and fertilizer production endeavor aimed at boosting fertilizer availability.

Itafos is headquartered in Houston, Texas, and is publicly traded on the TSX-V under the ticker symbol "IFOS". The company's primary investor is CL Fertilizers Holding LLC, which is connected to Castlelake, L.P., a notable global investment organization.

Frequently Asked Questions

1. What is the significance of Itafos' recent credit facility amendments?

The amendments provide Itafos with improved financial flexibility and liquidity for ongoing projects, especially the H1/NDR project.

2. How much is the new term loan amount after refinancing?

The term loan amount has been increased to $100 million after refinancing.

3. What will the proceeds of the credit facilities be used for?

The proceeds will be utilized for refinancing existing debts, repaying outstanding borrowings, and supporting general corporate activities.

4. What key projects does Itafos operate?

Itafos operates multiple projects, including Conda and Arraias, both focused on phosphate fertilizer production.

5. Where can I find more information about Itafos?

Further details about Itafos can be found on their official website at www.itafos.com.

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