Alto Ingredients signs $125 million loan with Orion

By William Gullotti

Buffalo, N.Y., Nov. 7 – Alto Ingredients, Inc. announced entering a $125 million senior secured term loan facility with certain funds managed by Orion Infrastructure Capital, according to a press release on Monday.

The term loan allows for periodic draws of up to $100 million, with the remaining $25 million becoming available upon satisfying certain conditions. In connection with entering into the term loan, the company will issue up to 1.6 million shares of common stock to Orion.

The loan has a six year tenor and has a 10% fixed annual interest rate with an original issue discount of 1.5%. The loan is not subject to scheduled amortization payments.

Guggenheim Securities, LLC acted as lead placement agent and lead arranger, and RBC Capital Markets, LLC acted as arranger for the senior secured term loan facility.

“The term loan gives us the capital we need to upgrade our plants to produce higher value products with better margins. The facility is also structured to give us tremendous flexibility – we can draw the capital over time, when we need it, and there are no financial covenants,” said Bryon McGregor, chief financial officer of Alto.

Based in Pekin, Ill., Alto is a producer and distributor of specialty alcohols and essential ingredients.

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