VeraSun plans to sell $200 million seven-year notes via Lehman, Morgan Stanley

By Paul A. Harris

St. Louis, Dec. 7 - VeraSun Energy Corp. expects to price a $200 million offering of seven-year senior secured notes (B-) early next week following the conclusion of an investor roadshow, according to an informed source.

Lehman Brothers and Morgan Stanley are joint bookrunners for the Rule 144A with registration rights offering.

The notes will come with a make-whole call for the first four years, after which they will become callable at a premium. The notes will also contain a three-year 35% equity clawback.

Proceeds will be used to repay debt and deposit funds into an escrow account to finance construction and start up costs for the company's Charles City facility.

VeraSun is a Brookings, S.D.-based ethanol producer.

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