GE Capital, Corporate Finance, an operating unit of
General Electric Company
), recently provided a $50 million debt financing to fertilizer
firm Rentech Nitrogen Partners, L.P. (
). Rentech will utilize the funds for its working capital
requirements to fuel further growth.
Based in Los Angeles, CA, Rentech manufactures and sells nitrogen
fertilizer products across the globe. The company is the largest
producer of synthetic granulated ammonium sulfate fertilizer in
Rentech operates two fertilizer production facilities owned by its
operating subsidiaries. These include the East Dubuque facility in
the northwestern corner of Illinois and the Pasadena facility in
Pasadena, TX. The East Dubuque facility uses natural gas as a
feedstock to produce primarily anhydrous ammonia. The Pasadena
facility uses ammonia and sulfur as feedstock to produce ammonium
sulfate and ammonium thiosulfate fertilizers and sulfuric acid.
Rentech will utilize the flexible financing solution from GE
Capital for a series of growth initiatives to increase its cash
flow. These include an upgrade of the nitric acid plant at the East
Dubuque facility for higher volume of production at lower power
consumption and installation of the fourth CO2 compressor in the
urea plant to improve yield. At the same time, the company intends
to install a third diesel exhaust fluid (DEF) to store additional
urea and increase the hydrogen recovery process at the East Dubuque
The working capital financing by GE Capital will enable Rentech to
address the cash conversion cycle to further develop its business.
Moving forward, Rentech expects to continue to benefit from the
industry insight of GE Capital to consolidate its business and
thereby strengthen its long-term business relationship with the
General Electric, the parent company of GE Capital, is one of the
largest and the most diversified technology and financial services
corporations in the world. With products and services ranging from
aircraft engines, power generation, water processing, and security
technology to medical imaging, business and consumer financing,
media content and industrial products, the company serves over 100
million customers worldwide.
General Electric currently has a Zacks Rank #3 (Hold). Other
companies in the industry that are worth mentioning include Federal
Signal Corp. (
) and ITT Corporation (
), both having a Zacks Rank #2 (Buy).
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