Terra announces conversion of preferred shares

Sioux City-Terra Industries Inc. said Feb. 24 that on March 15, 2010, all outstanding shares of its 4.25 percent Series A Cumulative Convertible Perpetual Preferred Shares (preferred shares) will convert to Terra common stock at a rate of 120.4819 shares of common stock per preferred share. Based on the 500 preferred shares currently outstanding, Terra will issue 60,241 shares of its common stock upon conversion. The shares of common stock will be exempt from registration under Section 3(a)(9) of the Securities Act of 1933, as amended. The regular quarterly dividend on the preferred shares will be paid on March 15, 2010. After the mandatory conversion date of March 15, 2010, dividends on the preferred shares will cease to accrue and no preferred shares will remain outstanding. Terms of the conversion are governed by provisions found in Section 8 of Terra’s company charter. A notice of conversion will be mailed to holders of record of the preferred shares by the close of business on Feb. 26, 2010. Holders of preferred shares with questions about the conversion should contact Computershare Trust Company, N.A., at 781-575-2724.