Feb 11 2008
BioEnergy International, LLC (BioEnergy), a science and technology leader developing biorefineries using proprietary biocatalysts to produce high value renewable fuels and biobased specialty chemicals, closed financing for the Bionol Clearfield, LLC 100 mgpy corn ethanol biorefinery beginning construction in Clearfield, Pennsylvania. The total $201 million debt financing was provided by TD Banknorth and WestLB, with tax exempt bond financing by Sterns Brothers. Equity funding was provided by BioEnergy and its investors Plainfield Asset Management, Camulos Capital, Itera Ethanol, LLC, Context Capital Management and NGP Capital Resources.
"With the launch of the Clearfield Project, we have created a model of sustainability with partners Getty Petroleum Marketing Inc. and the Commonwealth of Pennsylvania," said Stephen J. Gatto, Chairman and Chief Executive Officer of BioEnergy. "Near the birthplace of the modern petroleum refinery industry, this destination ethanol plant and our cellulosic pilot, will help usher in the next industrial revolution of biorefineries, that will provide Pennsylvanians with home grown fuels first from corn, then renewable cellulosic feedstocks such as wood chips and biomass."
"The financial closing of the Clearfield, Pennsylvania biorefinery project represents the culmination of many years of hard work for Steve Gatto and his BioEnergy team. The successful financing of the project, during a period of tight capital markets, was made possible by the use of innovative debt structuring techniques and the dedication of many financial professionals at TD Banknorth and WestLB," said Jerry Peters at TD Banknorth.
"BioEnergy's transaction demonstrates that debt capital is still available for strong transactions such as this one. We are pleased to have closed this deal with TD Banknorth for BioEnergy," said Michael Pantelogianis of WestLB Global Energy.
"We are very excited to have supported Steve Gatto and his team. We believe that BioEnergy International presents a new investment paradigm in the ethanol industry. Its focus on commodity risk management moves the industry from merchant ethanol plants to contracted assets. In addition, BioEnergy has developed technology that will revolutionize the biofuels and chemical industries. We believe that the cellulosic pilot plant is a stepping stone to that direction. We are looking forward to developing the company further," said Panos Ninios of Plainfield Asset Management.
The corn and cellulosic pilot plants to be built in Clearfield are core to BioEnergy's mission of integrating the development of novel biocatalysts for use in innovative, state-of-the-art biorefineries. Guided by a strategic business model and supported by proprietary technology, BioEnergy is a responsible leader in the new industrial revolution.