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Rentech obtains $100 million three-year revolving loan facility
By Susanna Moon
Chicago, Sept. 25 - Rentech, Inc. said it obtained a $100 million three-year revolving loan facility, collateralized by a portion of the units of Rentech Nitrogen Partners, LP owned by a subsidiary of Rentech, Inc.
Interest on the loans will be Libor plus 400 basis points.
Proceeds will be used to fund growth in its wood fiber processing business and for general corporate purposes.
Rentech said it borrowed $50 million under the facility, with the remaining $50 million available for future borrowings.
"The revolving loan facility provides us with low-cost capital that we can use to fund our strategy of expanding our wood fibre processing business through acquisitions and new development, with the goal of an initial public offering as a master limited partnership," Dan Cohrs, chief financial officer of Rentech, said in the company's press release.
Rentech provided 15.4 million of the 23.25 million common units of Rentech Nitrogen owned by Rentech as initial collateral. Up to 19.4 million units may be pledged as collateral. Rentech will continue to receive all cash distributions paid on the collateral units and retains the right to sell units not held as collateral as long as certain conditions outlined in the loan facility are met. Rentech, Inc. is the guarantor of the revolving loan facility.
Credit Suisse AG, Cayman Islands Branch is the lead lender and administrative agent. Credit Suisse AG, Cayman Islands Branch and Morgan Stanley Bank, NA each hold $50 million of the revolving loan facility commitment at close.
Rentech is a Los Angeles-based provider of clean energy services and nitrogen fertilizer.
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