Rentech Energy prices downsized $150 million term loan at Libor plus 850 bps, 1.5% Libor floor

By Paul A. Harris

Portland, Ore., June 9 - Rentech Energy Midwest Corp. priced its downsized $150 million six-year term loan with an interest rate of Libor spread of 850 basis points and a 1.5% Libor floor, a market source said on Thursday.

The deal first came into the market as a $170 million loan with guidance of Libor plus 650 bps, according to an earlier report which appeared in Prospect News.

The original issue discount was 98.

Credit Suisse Securities (USA) LLC was the lead bank.

The loan includes call protection of 102 in year one and 101 in year two.

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

The refinancing would be done in order to take advantage of potentially more attractive terms available in the marketplace today, according to an 8-K filed with the Securities and Exchange Commission on Monday.

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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