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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 15, 2000
TERRA INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
Maryland 1-8520 52-1145429
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
Terra Centre
600 Fourth Street
P.O. Box 6000
Sioux City, Iowa 51102-6000
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (712) 277-1340
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ITEM 5. Other Events.
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On March 15, 2000, Terra Industries Inc. issued the press release contained
in Exhibit 1 hereto, which is incorporated by reference herein.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TERRA INDUSTRIES INC.
By: /s/ George H. Valentine
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George H. Valentine
Senior Vice President, General Counsel
and Corporate Secretary
Date: March 15, 2000
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[LOGO]
Exhibit 1
Terra Industries Inc.
600 Fourth Street
P.O. Box 6000
Sioux City, IA 51102-6000
Telephone: (712) 277-1340
Telefax: (712) 277-7383
www.terraindustries.com
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NEWS
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For Immediate Release Contact: Frank Meyer (CFO)
(712) 279-8790
Mark Rosenbury (CAO)
(712) 279-8756
TERRA INDUSTRIES DELAYS REFINANCING, EXISTING LINES
CONSIDERED ADEQUATE
Sioux City, Iowa, (March 15, 2000) - Terra Industries Inc. (NYSE: TRA) reported
today that the January 10, 2000 financing commitment received from Citibank,
N.A., as Administrative Agent, and Salomon Smith Barney Inc., as Arranger, to
refinance Terra's existing bank lines has expired. Citibank had offered to
extend the commitment to March 31, 2000 but since the closing date of the
financing remained indeterminate, Terra allowed the commitment to expire. While
Terra will continue to evaluate with Citibank and other lenders various
refinancing alternatives, its existing $63 million revolving credit agreement,
which expires on December 31, 2002, is deemed adequate for the current year's
needs.
Burton M. Joyce, President and CEO of Terra, said, "Our forecasts of the year's
cash flows indicate that the existing revolving credit agreement provides
sufficient funds to finance peak 2000 working capital requirements and maintain
compliance with the agreement's earnings covenants. We will continue to explore
refinancing alternatives to improve Terra's liquidity and provide more operating
flexibility than our current bank debt. Given improvements we have seen in
nitrogen prices over the past six months, we look forward to accomplishing those
refinancing goals during the current year."
Terra Industries Inc., with 1999 revenues of $775 million, is a leading
international producer of nitrogen products and methanol.
Information contained in this release, other than historical information, may be
considered forward looking. Forward looking information reflects management's
current views of future events and financial performance that involve a number
of risks and uncertainties. The factors that could cause actual results to
differ materially include, but are not limited to, the following: changes in
financial markets, general economic conditions within the agricultural industry,
competitive factors and price changes (principally, sales prices of nitrogen and
methanol products and natural gas costs), changes in product mix, changes in the
seasonality of demand patterns, changes in weather conditions, changes in
agricultural regulations, and other risks detailed in the "Factors that Affect
Operating Results" section of Terra's current annual report.
(more)
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Note: Terra Industries' news announcements are also available on its web site,
www.terraindustries.com, and by fax at no charge by calling 800-758-5804, code
437906.
