By Sheri Kasprzak
New York, April 20 - Rentech, Inc. is gearing up to close a $54,851,596 registered direct placement of units.
A group of institutional investors agreed to buy 20,092,160 units at $2.73 each.
The units include one share and one warrant for two-tenths of a share, for a total of 4,018,432 shares. Each whole warrant is exercisable at $3.28 for five years.
The shares are being sold under two of the company's shelf registrations.
Proceeds will be used to fund long-lead time expenditures and site preparation costs related to the conversion of its East Dubuque plant to use coal as feedstock. The rest will be used for research and development and for general corporate purposes.
The deal is set to close April 25.
Credit Suisse (USA) LLC is the placement agent.
Rentech, based in Los Angeles, develops gas-to-liquid and coal-to-liquid synthetic fuels.
| Issuer: | Rentech, Inc.
|
| Issue: | Units of one share and one warrant for two-tenths of a share
|
| Amount: | $54,851,596
|
| Units: | 20,092,160
|
| Price: | $2.73
|
| Warrants: | One warrant for two-tenths of a share per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.28
|
| Placement agent: | Credit Suisse (USA) LLC
|
| Announcement date: | April 20
|
| Settlement date: | April 25
|
| Stock symbol: | Amex: RTK
|
| Stock price: | $2.73 at close April 19
|
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