Intrepid Potash Inc., Denver, said on June 2 it has paid down the remaining $15 million outstanding on its Series B Senior Notes with cash on hand. Along with the paydown, Intrepid made a make-whole payment of $0.5 million and paid accrued interest of $0.1 million to noteholders. The Series B Senior Notes were scheduled to mature in April 2023.
After the payoff, Intrepid said it has cash and cash equivalents of approximately $47 million and outstanding debt of $30 million on its revolving credit facility and $10 million outstanding on its PPP loan – which it expects to be forgiven – for total outstanding debt of $40 million.
“Rising prices, strong fertilizer sales, improving oil and gas fundamentals, and prudent capital spending have improved our net debt position to the point where we now have more cash on hand than outstanding debt,” said Bob Jornayvaz, Intrepid’s Executive Chairman, President and CEO.
“We appreciate the flexibility our noteholders allowed us as our financial position improved in recent years, although the limitations imposed by the Notes, combined with the more favorable rates under our revolving credit facility, made this voluntary paydown an easy decision as we expect to recoup the required make-whole payment through reduced interest expense in future periods. After the paydown, we have $44 million in availability remaining under our revolving credit facility and a $75 million accordion feature to potentially expand that facility in the future,” Jornayvaz added.