Rentech to sell 11.1 million shares to investors

Rentech reaches deal to sell 11.1 million shares to institutional investors

• On 10:33 am EDT, Wednesday September 23, 2009

LOS ANGELES (AP) -- Energy supplier Rentech Inc. said Wednesday that it reached a deal to sell 11.1 million shares of its common stock to institutional investors for $1.80 per share.

The price represents a 10 percent discount to the company's Tuesday closing stock price of $2.01. The sale is expected to close Monday and generate gross proceeds of about $20 million.

The net proceeds of the financing will be used for general corporate purposes, including funding part of the development costs related to Rentech's new renewable synthetic fuels and power project in Rialto, Calif.

Rentech shares fell 17 cents, or 8.5 percent, to $1.84 in morning trading.