Los Angeles-Rentech Inc. said June 16 that its ammonia fertilizer facility, Rentech Energy Midwest Corp., 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, Rentech executive vice president and CFO. Rentech continues to see strong demand and favorable market prices for the REMC fertilizer products. 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 gasification technology business. In other news, Rentech reports that it has formed an alliance with UOP LLC, a Honeywell company, to jointly offer the companies’ respective technologies for the commercial production of synthetic fuels, specialty waxes, and chemicals.
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