New Issue: Aventine prices $160 million seven-year floater to yield Libor plus 600 bps

By Paul A. Harris

St. Louis, Dec. 10 - Aventine Renewable Energy Holdings Inc. sold $160 million of seven-year senior secured floating-rate notes (B3/CCC+) at par on Friday to yield three-month Libor plus 600 basis points, according to a syndicate source.

That brought the interest rate exactly in the middle of the three-month Libor plus 587.5 to 612.5 basis point price talk.

Morgan Stanley and JP Morgan ran the books for the Rule 144A issue. The co-managers were Banc of America Securities LLC and Bear Stearns & Co.

Proceeds will be used to fund an expansion at the company's Illinois facility and to fund a dividend to shareholders.

The issuer is a Pekin, Ill.-based producer and marketer of ethanol.

Issuer:	Aventine Renewable Energy Holdings Inc.
Amount:	$160 million
Maturity:	Dec. 15, 2011
Security description:	Senior secured floating-rate notes
Bookrunners:	Morgan Stanley, JP Morgan
Co-managers:	Banc of America Securities LLC, Bear Stearns & Co.
Coupon:	Three-month Libor plus 600 basis points
Price:	Par
Yield:	Three-month Libor plus 600 basis points
Call features:	Callable on or after Dec. 15, 2006 at 103, 102, 101, par on and after Dec. 15, 2009
Equity clawback:	Until Dec. 15, 2007 for 35% at par plus applicable coupon
Trade date:	Dec. 10
Settlement date:	Dec. 17
Ratings:	Moody's: B3
	Standard & Poor's: CCC+
Price talk:	Three-month Libor plus 587.5-612.5 basis points

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.