Rentech Energy Midwest Corporation Secures $53 Million in Total Debt Financing
June 16, 2008 09:15 AM Eastern Daylight Time
businesswire.com
LOS ANGELES--(BUSINESS WIRE)--Rentech, Inc. (AMEX:RTK) today announced that its ammonia fertilizer facility, Rentech Energy Midwest Corporation (“REMC”), recently secured $53 million in total debt financing.
REMC entered into a credit agreement for $26.5 million with a unit of Credit Suisse on May 30, 2008. The credit agreement was increased to $53 million on June 13, 2008. The loans have a two-year term, with an optional one-year extension. The net proceeds of the term loans are available to Rentech and will be used for general corporate purposes. The loans are expected to be repaid over the term from cash flows generated at REMC.
“We are pleased to have enhanced our liquidity position through this debt financing, which is made possible by the financial performance of our ammonia fertilizer facility,” said Merrick Kerr, Executive Vice President and Chief Financial Officer of Rentech.
Rentech continues to see strong demand and favorable market prices for the fertilizer products produced at REMC. The Company is reaffirming its prior financial guidance of projected fiscal year 2008 EBITDA for REMC of over $40 million. REMC’s strong financial performance provides cash flows that help support Rentech’s efforts to commercialize its technology.
The Company’s commercialization plans for the Rentech Process include the Rentech Strategic Fuels and Chemicals Center in Adams County, Mississippi, near the city of Natchez. The facility is expected to use primarily petroleum coke as gasification feedstock to produce ultra-clean synthetic fuels, specialty waxes and chemicals. The captured carbon dioxide produced at this plant is designated to be sold under an existing long-term agreement with Denbury Resources for enhanced oil recovery in the region. With the carbon capture and sequestration design, the carbon dioxide emissions from the production of fuels at the Natchez facility are expected to be lower than those generated in the production of traditional petroleum-derived fuels.
Rentech has completed construction of a fully-integrated 420 gallon per day synthetic fuel and chemicals facility in Commerce City, Colorado. First fuel production at this facility is expected around the end of June upon the successful commissioning and start-up of all equipment and processes, at which time it is expected to be the only operating synthetic fuels facility of its kind in the United States.
About Rentech, Inc.
Rentech, Inc. (www.rentechinc.com), incorporated in 1981, provides clean energy solutions. The Rentech Process is a patented and proprietary technology that converts synthesis gas from biomass and fossil resources into hydrocarbons that can be processed and upgraded into ultra-clean synthetic fuels, specialty waxes and chemicals. These energy resources include natural gas, biomass, municipal solid waste, petroleum coke and coal. Rentech Energy Midwest Corporation manufactures and sells fertilizer products including ammonia, urea ammonia nitrate, urea granule and urea solution to the corn-belt region.
Safe Harbor
[ snip ] |
