Rentech Nitrogen Partners Explores Potential Strategic Alternatives, Incl. Sale

(RTTNews) - Rentech Nitrogen Partners, L.P. (RNF), announced that its board has initiated a process to explore and evaluate potential strategic alternatives for the partnership, which may include a sale of the partnership, a merger with another party, a sale of some or all of the assets of the partnership, or another strategic transaction.

The Board of Directors of Rentech Inc. (RTK), which is the General Partner of, and owns approximately 60% of the common units of, the partnership, concurred with the partnership's decision to explore its strategic alternatives.

Rentech Nitrogen has retained Morgan Stanley as its financial advisor to assist with the strategic review process. The partnership stated that there can be no assurance that this strategic review process will result in a transaction.

Separately, Rentech stated that it supports the decision by the board of Rentech Nitrogen Partners, L.P. to retain a financial advisor to evaluate strategic alternatives for the partnership. Rentech owns the general partner and approximately 60% of the common units of Rentech Nitrogen.

In addition, Rentech Inc. announced that GSO Capital Partners LP , the credit investment arm of Blackstone, has increased its credit facility for Rentech by up to $63 million. The majority of the proceeds from this new facility are expected to fund completion of Rentech's Canadian wood pellet projects through positive cash flow.

Rentech now estimates the cost to complete the construction of its Canadian wood pellet projects to be $125 million to $130 million.