GE Capital Upsizes Rentech Nitrogen Partners Revolver
Rentech Nitrogen Partners announced that it has entered into a $50 million revolving credit facility with GE Capital, Corporate Finance. The partnership said it plans to use the credit facility to fund growth projects. The facility will also be available, if needed, for general partnership purposes.
This credit facility replaces the $35 million working capital facility established in April 2013, providing more flexibility at lower cost to the partnership. The new facility has less restrictive financial covenants than the previous facility, with no financial covenants unless the outstanding balance exceeds $35 million or there is otherwise a default or an event of default continuing under the facility. The new facility does not have a requirement to repay periodically the entire outstanding balance, allowing the partnership to use borrowings under the facility to fund capital projects.
The credit facility is secured by substantially all of the assets of the partnership and is guaranteed by its operating subsidiaries. The interest rate on outstanding balances is LIBOR plus 325 basis points, with no LIBOR floor, to be paid quarterly. An unused facility fee of 50 basis points will be paid quarterly. The new facility requires no amortization of principal, and may be drawn upon until it matures on July 22, 2019.