TD Bank’s Term Loan Supports NEWP Buy
Rentech’s subsidiary, New England Wood Pellet, acquired the assets of Allegheny Pellet. The acquisition expands NEWP’s market position as the largest producer of wood pellets for the U.S. heating market.
NEWP acquired all of the assets of Allegheny for approximately $7 million in cash, using the proceeds of a 5-year, $8 million term loan from TD Bank. The term loan amortizes over 7 years, has an interest rate of LIBOR plus 2.25 percent, and contains financial covenants that may restrict distributions from NEWP to Rentech.
“Consistent with the growth strategy we outlined when we acquired NEWP, we are pleased to expand NEWP’s platform with the acquisition of Allegheny,” said Sean Ebnet, SVP of Rentech’s wood fibre business.
Rentechowns and operates wood fibre processing, wood pellet production and nitrogen fertilizer manufacturing businesses.