Dan Cohrs, CFO of Rentech Nitrogen GP, LLC, stated, “These expanded credit facilities give us flexibility to fund our capital program, both at East Dubuque and at our new Pasadena facility. We continue to have a $35 million undrawn revolver and a comfortable cash balance. The cost of capital, at LIBOR+375, is significantly lower than issuing new units for the acquisition. The excess proceeds of the term loan and the new $10 million capital expenditures facility help us to fund required capital at the Pasadena plant. We expect the acquisition to increase our cash distributions per unit, even after we make amortization payments that directly benefit the value of the equity.”Imperial Capital, LLC and BMO Capital Markets acted as financial advisors to Rentech Nitrogen in connection with the transaction.
Rentech Nitrogen Partners, L.P. Completes Acquisition Of Fertilizer Producer Agrifos LLC; Closes $300 Million Amended Senior Secured Credit Facilities
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