The ammonia expansion project at the facility in East Dubuque is progressing on schedule and within budget. The project is designed to increase production of ammonia for sale or upgrade to other products by approximately 23%, or 70,000 tons annually, and to increase on-site ammonia storage capacity by approximately 20,000 tons. The estimated approximately $100 million expansion project, which is being financed by a multiple-draw capital expenditure loan facility, is scheduled to be completed by the end of 2013, after the scheduled bi-annual turnaround. The Partnership expects the additional ammonia production to contribute to per unit cash distributions beginning in 2014.
In 2013, Rentech Nitrogen expects to commence a project to increase ammonium sulfate production capacity by 20%, or 115,000 tons annually, at its Pasadena facility. The Partnership expects to complete this expansion in the first half of 2014, with the additional ammonium sulfate production anticipated to contribute to per unit cash distributions beginning in the second half of 2014.
Third Quarter Cash Distribution
On October 23, 2012, Rentech Nitrogen declared a cash distribution of $0.85 per unit, payable on November 14, 2012 to unit holders of record as of November 7. This will be the third cash distribution paid by Rentech Nitrogen since its initial public offering in November 2011, and will result in cumulative cash distributions of $3.08 per common unit. Of that amount, $2.55 per common unit relates to cash distributions for the twelve months ending December 31, 2012. The calculation of cash available for distribution has been included below in this press release.Amended Credit Facility In conjunction with the closing of the Agrifos acquisition, Rentech Nitrogen amended its existing debt facility, and expanded its borrowing base from $135 million to $300 million. The facility also includes an accordion feature to expand the debt capacity by an additional $35 million, subject to additional lending commitments, to finance future growth projects. GE Capital Markets, Inc. served as lead arranger and book runner for the debt facilities.
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