Rentech Secures $100 Million Revolving Loan Facility
25 September 2013 - 9:00PM
Business Wire
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, âThe
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.â
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. Rentechâs
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 managementâs 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 Companyâs prior press releases
and periodic public filings with the Securities and Exchange
Commission, which are available via Rentechâs 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.
Rentech, Inc.Julie Dawoodjee CafarellaVice President of
Investor Relations and Communications310-571-9800ir@rentk.com
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