Rentech Inc. (RTK) announced that GSO Capital Partners LP, the credit investment arm of Blackstone, will invest $150 million in Rentech in the form of $100 million of convertible preferred stock and a $50 million term loan. The transactions closed on April 9, 2014. Rentech said the proceeds from the investment will fund identified growth opportunities in its wood fibre processing business.
In connection with the investment, Blackstone/GSO appointed two members to Rentech's Board: Douglas Ostrover, a senior managing director of Blackstone and co-founder of GSO Capital Partners, and Patrick Moore, the former chairman and chief executive officer of Smurfit-Stone Container Corporation. Rentech also announced its Chairman Emeritus Dennis Yakobson has retired from the board. Michael Ray also resigned from the Rentech board.
Rentech announced a settlement with Concerned Rentech Shareholders or CRS, whereby CRS will approve an additional member to join Rentech's Board and the board's newly formed Finance Committee. CRS will withdraw its slate of nominees for the 2014 annual meeting of shareholders; and will vote all of its shares in favor of the Rentech board's slate of director nominees at the 2014 annual meeting of shareholders.
Concerned Rentech Shareholders, a group led by Engaged Capital, LLC and Lone Star Value Management, LLC, are together one of the largest stockholders of Rentech, Inc. with aggregate ownership of approximately 4.7% of the outstanding shares of the company.
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