Nordic Biofuels closes
Abengoa has closed a $90 million financing for its Ravenna ethanol project. The B loan, led by CSFB, gained a B rating from Standard & Poor's, and a B2 rating from Moody's. It launched in late September, and closed on 28 October, bringing in 17 investors. Chadbourne & Parke advised the sponsor.
The special purpose vehicle for the project is Nordic Biofuels, which owns an 88 million gallons per year ethanol project in Ravenna, Nebraska. Abengoa, based in Spain, said in September that it was raising a $120 million loan, and contributing $47 million in equity to the project.
Under the original structure the funds raised would have funded construction costs, provided for initial working capital, and funded a one-year debt service reserve. However, Moody's noted in a report affirming the rating that the senior debt had been reduced and the shortfall met through a $32 million subordinated loan from Abengoa.
Neither Abengoa Bioenergy USA's chief operating officer, business development director, nor its head spokesman, would comment...
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