Aventine Renewable Energy tenders for $160 million floaters due 2011

By Jennifer Chiou

New York, June 14 - Aventine Renewable Energy Holdings, Inc. announced the start of a cash tender offer for all $160 million of its senior secured floating-rate notes due 2011.

The company is also soliciting consents to amend the note indenture, eliminating all of the restrictive covenants and certain events of default and releasing all of the collateral securing the notes.

The consent deadline is 5 p.m. ET on June 29. The offer ends at 8 a.m. ET on July 13.

For each $1,000 principal amount, the company said it will base its payout on the present value of $1,030 - the amount payable on Dec. 15, the notes' first call date - discounted using the yield to maturity of the 2.875% Treasury due Nov. 30, 2006 and 50 basis points, minus accrued interest up to the payment date.

Holders who tender before the consent deadline will receive a consent payment equal to $30.00 per $1,000 principal amount of notes, included in the calculated payout.

Aventine is seeking consents from a majority of noteholders.

The company said it expects to use some initial public offering proceeds for the tender.

J.P. Morgan Securities Inc. is the dealer manager (212 270-7407) and MacKenzie Partners, Inc. is the information agent (call collect 212 929-5500 or 800 322-2885).

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

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