Rentech Announces Its Subsidiary Rentech Nitrogen Completes Acquisition of Fertilizer Producer Agrifos LLC
Rentech, Inc. (NYSE MKT: RTK) today announced that its majority-owned subsidiary, Rentech Nitrogen Partners, L.P. (NYSE: RNF), has completed its previously announced acquisition of Agrifos LLC, the leading producer of synthetic granulated ammonium sulfate fertilizer in North America. Agrifos' fertilizer production facility is located in Pasadena, Texas. The business will become a subsidiary of Rentech Nitrogen.
The acquisition is expected to be accretive to cash distributions per unit paid by Rentech Nitrogen to its unitholders beginning in 2013. Rentech currently owns 23.25 million units of Rentech Nitrogen, a publicly-traded partnership that also owns a nitrogen fertilizer manufacturing plant located in East Dubuque, IL.
In conjunction with the closing of this acquisition, Rentech Nitrogen amended its existing debt facility, and expanded its borrowing base from $135 million to $300 million. The amended facility includes an accordion feature to expand the debt capacity by an additional $35 million, subject to new lending commitments, to finance future growth projects. The debt facility will continue to be guaranteed by Rentech Nitrogen. GE Capital served as administrative agent and GE Capital Markets served as sole lead arranger and book-runner for the debt facilities.
For more information on the acquisition, please refer to Rentech Nitrogen's press release issued today, which is available at www.rentechnitrogen.com.
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 owns the Rentech-SilvaGas and the Rentech-ClearFuels biomass gasification technologies, each of which can produce synthesis gas from biomass or 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, based on Fischer-Tropsch chemistry, which 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 and approximately 61% of the common units representing limited partner interests in Rentech Nitrogen Partners, L.P. (www.rentechnitrogen.com), a limited partnership traded publicly under the symbol RNF. Rentech Nitrogen Partners, L.P. manufactures and sells nitrogen fertilizer products domestically and abroad.
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 Rentech Nitrogen's business and outlook, including the acquisition of Agrifos and its impact on cash distributions. 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.
Julie Dawoodjee Cafarella
Vice President of Investor Relations and Communications