April 10 (Reuters) - Rentech Inc, which processes wood fibre, said Blackstone Group LP’s credit arm would invest $150 million in the company in return for two board seats.
Rentech shares rose as much as 19 percent to $2.15 in morning trade on Thursday. The company was valued at $411.8 million as of the stock’s close of $1.81 on Wednesday.
The company said GSO Capital Partners LP, the credit investment unit of Blackstone, will invest $100 million through convertible preferred stock and a $50 million term loan.
Blackstone named GSO’s co-founder Douglas Ostrover and former chief executive of Smurfit-Stone Container Corp Patrick Moore to Rentech’s board.
Rentech, which also makes and sells nitrogen fertilizer, said the funds would be used to grow its wood fibre processing business. (Reporting by Anannya Pramanick in Bangalore; Editing by Savio D‘Souza)