Boston, MA 10\/28\/2013 (wallstreetpr) –\u00a0<\/b>The wood fibre and nitrogen fertilizer manufacturer\u00a0Rentech, Inc. (NASDAQ:RTK) has secured a revolving loan at the tune of $100 million that will be used primarily for the improvement of its wood fire processing business. This loan is collateralized by a fraction of the units of its subsidiary Rentech Nitrogen Partners, L.P.<\/p>\n
The company also intends to use proceeds from the loan for other general corporate purposes. This loan has three years maturity period and attracts interest rate on the outstanding loan of LIBOR and another 4% per year. The company has borrowed $50 million of the available loan facility while the remaining half will be available for future borrowings. The success of future borrowing from this facility will be subject to satisfaction of certain conditions. In growing its wood fibre business, the company is strategizing to use the loan facility for new developments and acquisitions. Rentech sees the secured loan as a low-cost capital for its business expansion.<\/p>\n
The initial collateral for the loan is 15.4 million common units, from Rentech Nitrogen\u2019s 23.5 million common units. The amount of common units offered as collateral for the $100 million loan facility may increase to 19.4 million under certain circumstances. Under the revolving loan facility agreement, Rentech will retain the right to sell any units that are not held on collateral terms, but with certification of certain conditions. Also, the nitrogen fertilizer and wood fibre manufacturer will continue to receive any cash distributions on the units pledged as collateral.<\/p>\n
This revolving loan facility is being by Morgan Stanley Bank and Credit Suisse AG, Cayman Islands Branch. The latter is the administrative agent and lead lender in the commitment. Rentech owns and operates nitrogen fertilizer manufacturing business as well as wood fibre processing. The fertilizer business encompasses manufacture and sale of nitrogen fertilizer. On the other hand, the wood fibre business consists of manufacture and sale of wood chips.<\/p>\n
The company traded south Friday, sliding 14.55% to settle at $1.88.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 10\/28\/2013 (wallstreetpr) –\u00a0The wood fibre and nitrogen fertilizer manufacturer\u00a0Rentech, Inc. (NASDAQ:RTK) has secured a revolving loan at the tune of $100 million that […]<\/p>\n","protected":false},"author":13,"featured_media":11508,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3829,3830,3828,3831],"stock_ticker":[],"class_list":["post-11507","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nasdaqrtk","tag-rentech-inc","tag-rentech-inc-nasdaqrtk","tag-rtk","entry"],"acf":[],"yoast_head":"\n