The share repurchase program will become effective no sooner than Rentech's next open trading window, which is not expected to occur until after it reports its first-quarter results next month and it will be subject to various blackout periods under its insider trading policy. The program will expire on Dec. 31.
Rentech CEO D. Hunt Ramsbottom said, "We believe the new share repurchase program demonstrates our continued confidence in Rentech's strategy to generate long-term profitable growth, and reflects our commitment to creating shareholder value through a highly disciplined approach to capital allocation."
Shares are trading for $2.18 as of this writing.
Rentech owns and develops technologies for the production of synthetic fuels and renewable power. It also owns the general partner and approximately 60% of the common units of Rentech Nitrogen Partners, which manufactures and sells nitrogen fertilizer products domestically and abroad.