East Dubuque, Ill. — Rentech Nitrogen Partners LP reported that the ammonia capacity expansion project currently underway at its East Dubuque plant remains within budget and on schedule, to be completed by the end of 2013. The project is designed to increase ammonia production capacity by approximately 23 percent, or 70,000 st annually, and includes the addition of a 20,000 st ammonia storage tank. The expansion will bring Rentech’s annual ammonia production capacity to approximately 370,000 st, and will increase on-site ammonia storage capacity to 60,000 st. Rentech also has access to 15,000 tons of leased ammonia storage in Niota, Ill. The additional ammonia production is expected to be sold primarily as ammonia, but could also be available for upgrade to other products. Rentech said it continues to expect the expansion project to generate a return of greater than 20 percent, given current expectations for pricing of products and costs of natural gas. In February, Rentech secured a $100 million multiple draw term loan to finance the entire projected cost of the ammonia production and storage capacity expansion. GE Capital served as administrative agent and GE Capital Markets served as sole lead arranger and book-runner on the financing, which also included a $35 million working capital credit facility. Simultaneously with the closing of the capital expenditures facility and the working capital facility, Rentech Nitrogen terminated the bridge loan facility provided by parent company Rentech, Inc., that was put in place in December 2011. The company has drawn approximately $8.5 million on the capital expenditures facility to repay the outstanding principal under the bridge loan facility and to pay fees associated with the new credit facility.
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