Rentech details new $50 million term loan credit agreement

By Marisa Wong

Madison, Wis., April 11 - Rentech Nitrogen Holdings, Inc., an indirect wholly owned subsidiary of Rentech, Inc., disclosed details of its new term loan credit agreement in an 8-K filed Friday with the Securities and Exchange Commission.

Rentech entered into the credit agreement on April 9 with Credit Suisse AG, Cayman Islands Branch as administrative agent.

The facility consists of a $50 million delayed draw term loan with a five-year maturity that must be drawn by April 23.

According to a Thursday press release, the facility was issued at an original issue discount of 98 and includes a $75 million accordion feature.

Borrowings bear interest at Libor plus 700 basis points, subject to a 1% Libor floor.

In the event the company prepays the facility prior to its first anniversary, it will be required to pay a 1% prepayment fee.

The company expects to use the new facility to fund the acquisition and development of its wood pellet and wood fibre businesses and for general corporate purposes.

Upon the occurrence of an initial public offering of Rentech's wood pellets or wood fibre operations, the company must make an offer to prepay the entire outstanding principal amount of the facility.

Rentech Nitrogen's obligations under the facility are guaranteed by Rentech and will be secured by 2,762,431 common units of Rentech Nitrogen Partners, LP.

Rentech is a Los Angeles-based provider of clean energy services and nitrogen fertilizer.

© 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.