Americas Strategic Alliances Completes Financing for Three Large-Scale Ethanol Facilities
To that end, each facility will be located adjacent to an existing Cargill grain elevator and will be designed and built by Fagen, Inc. Cargill, Incorporated will provide corn and natural gas procurement services for each facility.
Wednesday February 15, 3:22 pm ET
Americas Strategic Alliances, LLC has announced that its ethanol development company, ASAlliances Biofuels, LLC (formerly Demeter Enterprises) has successfully completed its equity, subordinated debt, and senior debt financing totaling $423 million. The financing, which is the largest transaction completed to date in the U.S. ethanol industry, will provide the funding for the construction and operation of a portfolio of three 100 million gallons-per- year ethanol facilities. ASAlliances Biofuels' ethanol facilities will be located in Albion, NE, Bloomingburg, OH, and Linden, IN. Upon completion of the facilities, ASAlliances Biofuels will be one of the largest producers of ethanol in the U.S.
ASAlliances Biofuels was formed by ASA to be the platform for the development of numerous renewable fuel production facilities. The basic premise of the company was to combine top-tier service providers with sophisticated financial partners. To that end, each facility will be located adjacent to an existing Cargill grain elevator and will be designed and built by Fagen, Inc. Cargill, Incorporated will provide corn and natural gas procurement services for each facility, as well as ethanol and distillers grains marketing and transportation services. United Bio Energy Management, LLC will be responsible for operational and maintenance support services to each facility.
ASA will continue to provide project development, finance, capital markets, and corporate development expertise. A group of private equity firms comprised of American Capital Strategies, Ltd., Laminar Direct Capital, L.P. (a member of the D.E. Shaw group), US Renewables Group, LLC, and Midwest First Financial, Inc. provided a significant portion of the equity and all of the subordinated debt to ASAlliances Biofuels.
"We are so pleased to be taking the next step in our goal of creating an enterprise that stimulates growth in rural America and meets our nation's growing appetite for alternative energy sources, while lessening our country's dependence on foreign energy supplies," said Steve Durham, chairman of ASA.
