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The company produces nitrogen fertilizer products for use in both agricultural and industrial markets, mostly here in the United States. There has been some concern about the coming fallout in their dividend payment on a deal they have with Terra Industries (TRA), which gives TRA, as the owner of the general partner, increasing percentages of TNH’s distributable cash when said cash exceeds 71.5¢ per share, maxing out at 50% of distributable cash when the amount per share exceed $1.045. In a nutshell, this confusing arrangement indicates that Terra Nitrogen is obligated to reduce their dividend payout some time very soon.
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