Los Angeles-Rentech Inc. reports that Rentech Energy Midwest Corp. (REMC), its wholly-owned nitrogen fertilizer operation, has 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 for development of the company’s technology, synthetic fuels, and power projects. The term loan will mature on July 29, 2014, and REMC is expected to repay it from the company’s cash flow. “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, Rentech executive vice president and CFO. “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.
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