Rentech firms pricing on $150 million term loan at Libor plus 850 bps

By Sara Rosenberg

New York, May 26 - Rentech Energy Midwest Corp. set pricing on its $150 million term loan at Libor plus 850 basis points, the wide end of recent talk of Libor plus 800 bps to 850 bps and up from initial talk of Libor plus 650 bps, according to a market source.

As before, the loan has a 1.5% Libor floor, call protection of 102 in year one and 101 in year two and an original issue discount of 98.

The term loan matures in five years, following a shortening of the tenor from six years, and amortization is 10% per year.

Also, earlier in syndication, the loan was downsized from $170 million.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance the company's 2010 senior secured credit facility and fund a dividend.

Rentech Energy is an East Dubuque, Ill.-based manufacturer and seller of nitrogen fertilizer products and is a subsidiary of Los Angeles-based Rentech Inc., a provider of clean energy services.

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