Moody's rates Rentech notes B1

Moody's Investors Service said it assigned a B1 corporate family rating to Rentech Nitrogen Partners LP, along with a B1 rating (LGD 4, 55%) to its new $320 million guaranteed second-lien senior secured notes due 2021.

The proceeds will be used to repay the outstanding balances on an existing credit agreement and term loan totaling over $200 million and to prefund a number of capital expenditures totaling just under $100 million.

These are first-time ratings for the partnership and are dependent upon completion of the transaction with terms that are substantially similar to those provided to the agency, Moody's said.

Moody's also said it assigned an SGL-3 speculative-grade liquidity rating, reflecting the firm's adequate liquidity.

The outlook is stable.

Nitrogen fertilizer prices are expected to remain high in this pro-agribusiness environment and North American natural gas feedstock costs are anticipated to remain low for some time, the combination of these factors augers well for the company's credit metrics, the agency said.

The lack of product and geographic diversity, as well as the reliance on a single plant site for 85% of EBITDA and customer concentration limits the ratings, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.