NEW YORK (TheStreet) -- Rentech (RTK) was gaining 14.4% to $2.06 on news of a settlement agreement with Concerned Rentech Shareholders, and a $150 million investment from Blackstone's (BX) GSO Capital Partners.
As part of the settlement with CRS the group will be able to approve a director Rentech nominates to its board of directors at its 2014 shareholders meeting. The wood fibre processor will also form a Finance Committee, which the CRS-approved director will be a part of.
Separately, Blackston Group's credit arm announced it will invest $150 in Rentech in return for two board seats.
Must read: Warren Buffett's 10 Favorite Growth Stocks
TheStreet Ratings team rates RENTECH INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RENTECH INC (RTK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."