OVERLAND PARK, Kan.--(BUSINESS WIRE)--Sep. 28, 2016--
Compass Minerals (NYSE: CMP), a leading essential minerals company,
announced today that it has issued a new $450 million senior secured
term loan, which matures July 1, 2021, and carries an interest rate of
LIBOR plus 2 percent.
Compass Minerals intends to use the proceeds from the new debt to
purchase the remaining 65 percent equity in Produquímica Indústria e
Comércio S.A. (Produquímica) and retire a portion of the debt it expects
to assume from Produquímica at closing. Based in São Paulo, Brazil,
Produquímica is one of Brazil’s leading manufacturers and distributors
of specialty plant nutrients.
“The attractive fundamentals of Compass Minerals’ unique portfolio of
businesses and our history of strong cash flow generation continue to
enable us to access low-cost capital,” said Matthew Foulston, Compass
Minerals’ chief financial officer. “With this financing in place, we
expect to acquire the remainder of Produquímica as planned in early
October 2016.”
About Compass Minerals
Compass Minerals is a leading provider of essential minerals that solve
nature’s challenges, including salt for winter roadway safety and other
consumer, industrial and agricultural uses, and specialty plant
nutrition minerals that improve the quality and yield of crops. Named
one of Forbes’ 100 Most Trustworthy Companies in America in 2015 and
2016, Compass Minerals’ mission is to be the best essential minerals
company by delivering where and when it matters. The company produces
its minerals at locations throughout the U.S. and Canada and in the U.K.
For more information about Compass Minerals and its products, please
visit www.compassminerals.com.
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including without limitation statements about the expected acquisition
of the remaining Produquímica equity and the timing of the closing date
and retirement of debt. The company uses words such as “may,” “would,”
“could,” “should,” “will,” “likely,” “expect,” “anticipate,” “believe,”
“intend,” “plan,” “forecast,” “outlook,” “project,” “estimate” and
similar expressions suggesting future outcomes or events to identify
forward-looking statements or forward-looking information. These
statements are based on the company’s current expectations and involve
risks and uncertainties that could cause the company’s actual results to
differ materially. The differences could be caused by a number of
factors, including the risk that regulatory approvals required for the
purchase are not obtained, the risk that the proposed full ownership
acquisition of Produquímica could disrupt the plans and operations of
the company, Produquímica or both and the risk that the company may not
realize the expected financial and other benefits from the proposed
acquisition. For further information on risks and uncertainties that may
affect the company’s business, see the “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” sections of the company’s Annual Report on Form 10-K for the
year ended December 31, 2015 and its Quarterly Reports on Form 10-Q for
the quarters ended March 31, 2016 and June 30, 2016 filed with the SEC.
The company undertakes no obligation to update any forward-looking
statements made in this press release to reflect future events or
developments. Because it is not possible to predict or identify all such
factors, this list cannot be considered a complete set of all potential
risks or uncertainties.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160928006094/en/
Source: Compass Minerals
Compass Minerals
Investor Contact
Theresa L.
Womble, +1-913-344-9362
Director of Investor Relations
womblet@compassminerals.com
or
Media
Contact
Tara Hart, +1-913-344-9319
Manager of Corporate
Affairs
MediaRelations@compassminerals.com