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|Rentech Energy Midwest Corporation Completes $62.5 Million Debt Financing|
LOS ANGELES, Feb 01, 2010 (BUSINESS WIRE) -- Rentech, Inc. (NYSE AMEX:RTK) today announced that Rentech Energy Midwest Corporation (REMC), its wholly-owned nitrogen fertilizer operation, secured $62.5 million of debt financing.
The net proceeds of the financing will be used to repay REMC's outstanding term loan of approximately $37.1 million and for general corporate purposes, including funding development of the Company's technology and synthetic fuels and power projects. The new term loan will mature on July 29, 2014 and is expected to be repaid from cash flows generated by REMC. Credit Suisse was the sole lead arranger of the loan.
"We are pleased to have shown our access to the credit market by closing on this $62.5 million term loan, which strengthens Rentech's consolidated liquidity and extends the maturity of our term debt at REMC," said Dan Cohrs, Executive Vice President and Chief Financial Officer of Rentech. Mr. Cohrs continued, "This loan demonstrates the value of REMC, which provides both cash and operational expertise as we implement our alternative energy strategy."
The Company stated that its fiscal year 2010 budgeted activities are fully financed. Budgeted activities for the fiscal year include the current phase of development (pre-front-end engineering and design work, such as permitting) for the Company's Rialto and Natchez Projects, operation of the Product Demonstration Unit, continued research and development of the Rentech technologies and funding of general working capital needs.
About Rentech, Inc.
Rentech, Inc. (http://www.rentechinc.com), incorporated in 1981, provides clean energy solutions. The Company's Rentech-SilvaGas biomass gasification process can convert multiple biomass feedstocks into synthesis gas (syngas) for production of renewable fuels and power. Combining the gasification process with Rentech's unique application of proven syngas conditioning and clean-up technology and the patented Rentech Process based on Fischer-Tropsch chemistry, Rentech offers an integrated solution for production of synthetic fuels from biomass. The Rentech Process can also convert syngas from fossil resources into ultra-clean synthetic jet and diesel fuels, specialty waxes and chemicals. Final product upgrading is provided under an alliance with UOP, a Honeywell company. Rentech develops projects and licenses these technologies for application in synthetic fuels and power facilities worldwide. Rentech Energy Midwest Corporation, the Company's wholly-owned subsidiary, manufactures and sells nitrogen fertilizer products including ammonia, urea ammonia nitrate, urea granule, and urea solution in the corn-belt region of the central United States. Rentech has been recognized by Biofuels Digest as one of the 50 Hottest Companies in Bio-energy and has been named as one of the Biofuels Digest Companies of the Year for its recent innovations and achievements, particularly in aviation biofuels.
Safe Harbor Statement
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 about matters such as projected funding for the Company's fiscal year 2010 budgeted activities, the value of Rentech Energy Midwest Corporation, the anticipated use of proceeds from the debt financing and the projected flexibility and liquidity of the Company. These statements are based on management's current expectations and actual results may differ materially as a result of various risks and uncertainties. Other factors that could cause actual results to differ from those reflected in the forward-looking statements include the financial means of Rentech to build proposed projects, fluctuations in commodities prices including the price of oil and the materials necessary to construct projects, the impact of changing government regulations on the project permitting process, the qualification of renewable power and fuels and market demand and pricing for REMC's products and factors set forth in the Company's press releases and periodic public filings with the Securities and Exchange Commission, which are available via Rentech's web site at http://www.rentechinc.com. The forward-looking statements in this press release are made as of the date of this release, and Rentech does not undertake to revise or update these forward-looking statements, except to the extent that it is required to do so under applicable law.
For more information
Please contact: Julie Dawoodjee, Director of Investor Relations, Rentech, Inc. at 310-571-9800, extension 341, or by email at email@example.com.
SOURCE: Rentech, Inc.