Rentech to Provide Bridge Loan of Up to $40 Million to Rentech Nitrogen Partners
Rentech, Inc. (NYSE AMEX: RTK) today announced that it has provided Rentech Nitrogen Partners, L.P. (NYSE: RNF) with a commitment to make an unsecured loan of up to $40 million, to fund the continuation of the ammonia and storage expansion project underway at Rentech Nitrogen.
Under the terms of the loan, Rentech Nitrogen may draw on the loan facility periodically through May 31, 2012 at an interest rate of LIBOR plus 5.5%. Interest on the bridge facility will accrue. Should the bridge loan remain outstanding after that date, the interest rate would increase in accordance with the terms of the loan agreement, which are summarized in a Current Report on Form 8-K that the Company will file with the Securities and Exchange Commission. Rentech Nitrogen is currently negotiating with lenders to arrange debt financing for the entire cost of the project, and expects to syndicate and close a term loan within the next several months.
Rentech is the non-economic general partner of Rentech Nitrogen and indirectly owns the majority of the common units representing limited partnership interests in Rentech Nitrogen.
About Rentech, Inc.
Rentech, Inc. (www.rentechinc.com) owns and develops technologies that enable the production of certified synthetic fuels and renewable power when integrated with certain other third-party technologies. The Company's clean energy technology portfolio includes the Rentech-SilvaGas biomass gasification technology and the Rentech-ClearFuels biomass gasification technology, both of which can produce synthesis gas from biomass and waste materials for production of renewable power and fuels. The Rentech-ClearFuels Gasifier can also produce renewable hydrogen as a product. Rentech also owns the patented Rentech Process which is based on Fischer-Tropsch chemistry. The Rentech Process can convert syngas from the Company's own or other gasification technologies into complex hydrocarbons that then can be upgraded into fuels or chemicals using refining technology that we license.
Rentech also owns, through its wholly owned subsidiaries, the general partner interest and approximately 61% of the common units representing limited partner interests in Rentech Nitrogen Partners, L.P. (www.rentechnitrogen.com), a publicly traded limited partnership. Rentech Nitrogen Partners, L.P. manufactures and sells nitrogen fertilizer products including ammonia, urea ammonia nitrate, granular urea and urea liquor in the Mid Corn Belt region of the United States.
Vice President of Investor Relations and Communications