Intrepid Announces Early Paydown of Series C Senior Notes

Rhea-AI Summary

Intrepid Potash announced the early paydown of its Series C senior notes amounting to $17.1 million, including principal and accrued interest, which was paid entirely from cash on hand. Following this payment, Intrepid holds approximately $14 million in cash, $30 million under its revolving credit, and $15 million remaining on its Series B notes. The company plans to utilize available credit to support its business strategy, particularly in expanding oilfield solutions. Intrepid remains optimistic about its long-term prospects in the Delaware Basin.

Positive

• Early paydown of Series C senior notes reduces overall debt burden and effective interest rate.
• Approximately $44 million available under existing credit facility provides financial flexibility.
• Management indicates a strategic focus on optimizing existing assets and pursuing acquisition opportunities.

Negative

• None.

DENVER, CO, July 21, 2020 (GLOBE NEWSWIRE) -- 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 Finance
Phone:  303-996-3048
Email: matt.preston@intrepidpotash.com

FAQ

What recent financial moves has Intrepid Potash made?

Intrepid Potash paid down its Series C senior notes by $17.1 million on July 17, 2020.

How much cash does Intrepid Potash have after recent payments?

After the payment, Intrepid has approximately $14 million in cash on hand.

What is the current outstanding debt of Intrepid Potash?

Intrepid has $30 million outstanding under its revolving credit facility and $15 million remaining on its Series B senior notes.

What is the purpose of Intrepid's recent financial strategy?

The strategy aims to expand its oilfield solutions business and enhance financial flexibility.

What does Intrepid Potash produce?

Intrepid produces potassium, magnesium, sulfur, salt, and water products, serving agriculture and oil and gas industries.