Rentech Nitrogen: The Last Looming Question
Mon, Apr. 4, 2:58 PM
- Rentech (RTK +4.2%) extends Friday's gains that followed news that it closed the merger of Rentech Nitrogen Partners (NYSE:RNF) and CVR Partners, which has enabled it to retire $142M of senior obligations to GSO Capital Partners; shares are up 43% since the announcement.
- RTK says the acquisition improves its liquidity positioning, reduces future interest expenses and better positions itself to maximize the value of its investments within the wood fibre processing industry.
- RTK also says it retained $109.8M of the total pre-tax proceeds from the deal and estimates it will pay $5M-$15M in taxes.
- Now read Rentech revises agreements with GSO to assist RNF-CVR merger closure
Tue, Mar. 15, 12:49 PM
- Rentech (RTK +4.4%) rises after GSO Capital Partners agrees to provide $6M in additional short-term liquidity if required prior to the closing of the pending merger between Rentech Nitrogen Partners (RNF -1.7%) and CVR Partners (UAN -2.8%).
- GSO also agrees to revise its existing waiver and amendment agreement with RTK, which the company says is intended to enable the merger to close without regard to whether RTK receives units in CVR sufficient to repay a fixed amount of preferred stock and debt held by GSO.
- Separately, RNF says it sold its Pasadena, Tex., facility to Pasadena Commodities International, the plant's long-time distributor for ammonium sulfate.
Nov. 10, 2015, 3:19 PM
- Rentech (RTK -30.3%) is routed after reporting a Q3 loss of $1.38/share on revenues that came in about a third short of expectations.
- RTK warns that it will need either the proceeds anticipated from the merger of Rentech Nitrogen (RNF -5.3%) with CVR Partners (UAN -0.6%) and the sale of its Pasadena facility or other sources of cash by the early months of 2016 to fund its operating and investing needs; in the event the merger and Pasadena sale are delayed, RTK says it would need alternative sources of cash to fund its operations leading to the closing of the merger.
- RTK says it is in discussions to arrange additional borrowing and/or to pledge or sell some of the 3.1M unpledged units of RNF it owns, but the outcome of such discussions is not yet known.
Aug. 10, 2015, 12:45 PM
Feb. 17, 2015, 9:45 AM
- Rentech Nitrogen Partners (RNF +5.8%) pops higher at the open after saying it has begun a process to explore potential strategic alternatives, which may include a sale of the partnership, a merger with another party, a sale of some or all of the assets, or another strategic transaction.
- Rentech (RTK +3.9%) says it concurs with the partnership’s decision to explore its strategic alternatives.
- RTK also says GSO Capital Partners has increased its credit facility by up to $63M; most of the proceeds from the new facility are expected to fund completion of RTK's Canadian wood pellet projects, whose costs are now seen rising to $125M-$130M.
Oct. 2, 2014, 2:59 PM
- Fertilizer producers are mostly lower after Agrium (AGU -1.9%) announced weak guidance for H2 of its FY 2014: POT -2%, MOS -0.9%, OTCPK:YARIY -2.8%, IPI -2.3%, RNF -1.2%, but CF +2.4%.
- Canaccord and Piper Jaffray downwardly revised their 12-month price targets for the stock, by a respective 1.9% to $102 while reiterating a Buy rating and by 4.2% to $92 while maintaining a Neutral rating; however, BMO and RBC each reiterated their Outperform ratings on the stock with respective target prices of $99 and $115.
- Jim Cramer thinks AGU's woes could reverberate throughout the ag sector, at least in the near-term, with selling possibly spread to the likes of Monsanto (MON -0.4%), Syngenta (SYT +0.1%), Deere (DE +0.1%) and Agco (AGCO +1%).
Sep. 30, 2014, 9:40 AM
- Mosaic (MOS -2.1%) opens lower after saying it is reducing phosphate fertilizer production because of high sulfur and ammonia prices.
- MOS says the curtailment will result in lower operating rates at its mines and concentrates plants but does not expect any employee layoffs.
- MOS also says it expects Q3 potash and phosphate sales volumes to be at or near the lower end of previous guidance, due to weather-driven production outages in potash and by timing of shipments in phosphates; prices are expected to remain near the middle of guidance.
- POT -1.1%, AGU -0.9%, CF -0.2%, RNF -0.8%, RTK -1.7%.
Jun. 26, 2014, 2:54 PM
- Rentech (RTK +6.1%) shareholder Dolphin Limited Partnership calls on RTK to spin off its wood fiber processing business and establish a strategic alternatives process to maximize value for RTK's 59.8% interest in Rentech Nitrogen Partners (RNF +2.9%).
- Dolphin says a successful process that drives RNF to ~$30/unit would generate a near 50% increase in RTK's current share price.
May 16, 2014, 5:37 PM
Apr. 10, 2014, 12:11 PM
- Rentech (RTK +13.2%) shares surge on news that Blackstone Group's credit arm will invest $150M in the company in return for two board seats.
- RTK says the funds are intended to give its wood fibre processing business the scale necessary for a possible IPO as an MLP.
- Blackstone's GSO Capital partners co-founder Douglas Ostrover and former Smurfit-Stone Container CEO Patrick Moore will join RTK's board.
- RNF +2.9%.
Mar. 11, 2014, 3:59 PM
- Rentech (RTK -7.1%) and Rentech Nitrogen Partners (RNF -2.4%) tumble after posting wider than expected net losses and disappointing revenue.
- RTK reported a Q4 loss of $0.06/share, $0.04 worse than the consensus analyst estimate, while revenues fell 14.3% Y/Y to $79.3M vs. $84.7M consensus.
- RNF reported a Q4 loss of $0.45/share vs. consensus estimate of an $0.08 loss, while revenues fell 40.9% Y/Y to $54.6Mvs $69.7M consensus.
- Management believes completed capacity expansion projects have increased production rates and should increase production for the year at the Pasadena and East Dubuque facilities.
Jan. 13, 2014, 11:48 AM
- A group led by Engaged Capital, Lone Star Value Management and a major shareholder says it has nominated four candidates for election to Rentech's (RTK +5.6%) board at the upcoming annual meeting.
- The group highlights "its frustration at the continued destruction of shareholder value... and the persistent missteps and lapses in oversight that have caused the group to lose confidence in the current Board's ability to effectively oversee RTK."
- RNF +3%.
Dec. 18, 2013, 10:18 AM
- Rentech Nitrogen Partners (RNF +3.5%) confirmed late yesterday its estimate that it will take $1M-$2M to repair its ammonia synthesis loop that was recently damaged in a fire at its East Dubuque production facility.
- RNF expects the "overwhelming majority" of the impact on deliveries of lost production due to the fire to occur in 2013, with minimal impact on previously forecast deliveries for 2014.
- RNF continues to anticipate ammonia production at the increased rate of ~1,020 tons/day by the end of Jan. 2014.
Oct. 28, 2013, 12:46 PM
Oct. 28, 2013, 10:30 AM
- Rentech Nitrogen Partners (RNF -12.3%) is under pressure after announcing a change in the timing of its cash distributions and saying cash distributions related to Q4 could be as low as zero, extending Friday's losses on news of a lower than expected Q3 distribution.
- RNF blames the deteriorating outlook on a greater than expected decline in prices for ammonium sulfate prices and the illiquidity of the market which has continued longer than expected.
- EBITDA for the Pasadena facility is expected to improve from Q3 but remain negative for Q4 and the full year; Q4 forecast for the East Dubuque facility is reduced by higher costs and lower sales due to a compressor-related repair.
- RTK -9.5%.
Oct. 28, 2013, 9:12 AM
Rentech Nitrogen Partners LP is a nitrogen fertilizer manufacturer. The Company produces ammonia and urea ammonium nitrate solution, or UAN.
Sector: Basic Materials
Industry: Agricultural Chemicals
Country: United States