New York, August 10, 2015 -- Moody's Investors Service says that Rentech Nitrogen Partners LP (B1 stable) announced merger agreement with CVR Partners, LP (unrated) is a modest credit positive. Under the merger agreement CVR will acquire all of the outstanding units of Rentech for a total consideration of $533 million, based on CVR's closing price on August 7, but the transaction will exclude Rentech Nitrogen'sPasadena, Texas facility which will be retained by unit holders of Rentech Nitrogen or sold separately. The combination improves the scale, adds geographic diversity, and removes the risk from generating the majority of earnings from a single-site. While all of the transaction details are not yet finalized, CVR indicated that it would assume or refinance Rentech's debt. The deal implies an enterprise value of $839 million for Rentech. The merger is subject to regulatory approval and approval by Rentech Nitrogen's unit holders and is targeted to close by year-end 2015. There is no change to the ratings or outlook.
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