NEW YORK (AP) - Fertilizer maker Intrepid Potash said Thursday it plans an initial public offering of its common stock, but did not disclose any terms in its filing with the Securities and Exchange Commission.
Formed in November 2007, Intrepid plans to use proceeds from the offering to acquire all of predecessor company Intrepid Mining's assets other than cash. Remaining proceeds will be used to repay debt under its existing credit facility.
According to its preliminary prospectus with the SEC, Intrepid is the country's largest producer of muriate of potash, or potassium chloride, a fertilizer that helps regulate plants' physiological functions and improves plant durability. The company owns three production facilities in New Mexico and two in Utah.
Intrepid is led by Robert P. Jornayvaz III, who has 27 years of experience in the oil and gas industry and has served, directly or indirectly, as the manager of Intrepid Mining since its founding in 2000.
For the nine months ended Sept. 30, the company reported income from continuing operations of $23.1 million, compared with $13.4 million in the year-ago period. Total sales rose to $140.1 million from $100.7 million in the same period in 2006.
Morgan Stanley is underwriting the deal.
The company has yet to determine on which exchange and under what symbol the shares will trade.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
© 2007 AFX News
