Rentech Nitrogen to raise $275m in IPO, plans ammonia expansion

26 October 2011 16:56  [Source: ICIS news]

HOUSTON (ICIS)--Rentech Nitrogen Partners is seeking to raise $275m (€198m) in an initial public offering (IPO), the US-based nitrogen fertilizer producer said on Wednesday.

Rentech Nitrogen, a subsidiary of clean energy technology firm Rentech, said in a filing with the US Securities and Exchange Commission (SEC) that the bulk of the proceeds would go toward debt repayment.

However, Rentech said around $5.7m would be used to fund expansion of its urea production capacity as well as a project to produce diesel exhaust fluid (DEF) at its nitrogen fertilizer plant in East Dubuque, Illinois. DEF is a urea-based reactant used in diesel engines to reduce emissions of nitrogen oxides.

In addition, the company said about $600,000 would be used to pay for an engineering study of a planned 70,000 tonne/year ammonia expansion project at East Dubuque.

The ammonia expansion would cost an estimated $100m and could be completed within 30 months, the company added.

Rentech expects to complete the front end engineering design work for the ammonia expansion project early next year, it said.

“As we complete engineering and more detailed cost estimates, which could vary substantially from current cost estimates, we will continue to evaluate the ammonia market to determine whether the expected returns on this project remain favourable,” it said.

In its SEC filing, Rentech said the plant at East Dubuque produced 267,000 tonnes of ammonia and 287,000 tonnes of urea ammonium nitrate (UAN) in the fiscal year ended 30 September 2010.

Rentech bought the plant from Canadian fertilizer firm Agrium in 2006.

($1 = €0.72)

For more on fertilizers, visit ICIS Fertilizers
By: Stefan Baumgarten
+1 713 525 2653



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