Rentech, Inc. (NASDAQ: RTK) today announced that it has secured a $100
million revolving loan facility, collateralized by a portion of the
units of Rentech Nitrogen Partners, L.P. owned by a subsidiary of
Rentech, Inc. The revolving loan facility has a maturity of three years
and an interest rate on outstanding loan amounts of LIBOR plus 4.0% per
year. Rentech intends to use the net proceeds from the facility to fund
growth in its wood fibre processing business and for general corporate
purposes. Rentech borrowed $50 million under the facility, with the
remaining $50 million of capacity available for future borrowings, so
long as certain conditions are satisfied at the time of borrowing.
Dan Cohrs, Chief Financial Officer of Rentech, stated, “The revolving
loan facility provides us with low-cost capital that we can use to fund
our strategy of expanding our wood fibre processing business through
acquisitions and new development, with the goal of an initial public
offering as a master limited partnership.”
Rentech provided 15.4 million of the 23.25 million common units of
Rentech Nitrogen currently owned by Rentech as initial collateral. Under
certain circumstances, up to 19.4 million units may be pledged as
collateral. Rentech will continue to receive all cash distributions paid
on the collateral units and retains the right to sell units not held as
collateral as long as certain conditions outlined in the loan facility
are met. Rentech, Inc. is the guarantor of the revolving loan facility.
Credit Suisse AG, Cayman Islands Branch is serving as lead lender and
administrative agent on the facility. Credit Suisse AG, Cayman Islands
Branch and Morgan Stanley Bank, N.A. each hold $50 million of the
revolving loan facility commitment at close.
About Rentech, Inc.
Rentech, Inc. (www.rentechinc.com)
owns and operates wood fibre processing and nitrogen fertilizer
manufacturing businesses. The wood fibre processing business consists of
the provision of wood chipping services and the manufacture and sale of
wood chips, through a wholly-owned subsidiary, Fulghum Fibres, Inc., and
the development of wood pellet production facilities. Rentech’s nitrogen
fertilizer business consists of the manufacture and sale of nitrogen
fertilizer through its publicly-traded subsidiary, Rentech Nitrogen
Partners, L.P. (NYSE: RNF). Rentech also owns the intellectual property
including patents, pilot and demonstration data, and engineering designs
for a number of clean energy technologies designed to produce certified
synthetic fuels and renewable power when integrated with third-party
technologies.
Safe Harbor Statement
This press release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995 about matters such as:
our ability to grow our wood fibre processing business through new
development and acquisitions and the timing and possibility of an
initial public offering of the wood fibre processing business as a
master limited partnership. These statements are based on management’s
current expectations and actual results may differ materially as a
result of various risks and uncertainties. Other factors that could
cause actual results to differ from those reflected in the
forward-looking statements are set forth in the Company’s prior press
releases and periodic public filings with the Securities and Exchange
Commission, which are available via Rentech’s website at www.rentechinc.com.
The forward-looking statements in this press release are made as of the
date of this press release and Rentech does not undertake to revise or
update these forward-looking statements, except to the extent that it is
required to do so under applicable law.
Copyright Business Wire 2013