WestLB Arranges the Largest Project Financing
in the Ethanol Space for ASAlliances Biofuels, LLC
WestLB Capital Markets North America unit announced today that it successfully closed a USD 275 million groundbreaking senior secured credit facility for ASAlliances BioFuels, LLC (ASAlliances). The facility supports the construction of the largest facilities in the United States and operation of a portfolio of three 100 million gallons per year ethanol facilities. WestLB acted as Financial Advisor, Lead Arranger, Sole Bookrunner and Administrative Agent for this transaction.
“With the ethanol space being a new area of investment, WestLB created a financing structure that would attract a broad range of short and long-term investors,” said Tom Murray, Managing Director and Co-Head of WestLB’s Loan & Debt Capital Markets Group. “The dual tranche structure was chosen to meet the needs of varied investors.”
WestLB has brought one of the largest and most comprehensive project financings to market in the ethanol space, along with strong contractual linkages and well-crafted relationships between sponsor and service providers. The innovative use and structured nature of the supply, off-take and equity roles played by transaction participants was well crafted to produce a strong, workable, transparent structure that has been well received by the marketplace.
"The rapid growth of the ethanol industry will continue to require new capital from many sources. The ASAlliances transaction, lead by the Oil, Gas & Petrochemicals Group, is an example of the innovative structuring capabilities WestLB brings to both new and established industries, ” said Ronald Ormand, Managing Director & Head of Oil, Gas & Petrochemicals at WestLB. “As the ethanol industry grows, WestLB will continue to provide innovative and sound financing solutions and structures to its clients and investors."
“WestLB’s creativity in developing this innovative structure and dedication to the growth of ethanol as an alternative energy source proved integral to the successful completion of this deal,” said Steve Durham, chairman of Americas Strategic Alliances.
About WestLB Capital Markets North America
WestLB develops sophisticated structured solutions through a team of highly experienced investment banking and capital markets professionals. WestLB has a long-standing presence in the corporate, structured and asset-backed financing sectors supporting clients' needs with capital commitments, advisory services and innovative financing solutions. The bank’s global relationships, coupled with its unique understanding of local economies, industries and cultures, help WestLB bankers consistently deliver high quality advice and service.
About WestLB
WestLB AG is one of Germany’s leading financial services providers with offices in the world’s largest financial centers. The firm provides financial advisory, lending, structured finance, project finance, capital markets and private equity products, asset management, transaction services and real estate finance to institutions. WestLB has total assets of more than Euro 262.4 billion, as of September 30, 2005. For more information, please visit www.westlb.com.
In the United States, certain securities, trading, brokerage and advisory services are provided by WestLB’s wholly owned subsidiary WestLB Securities Inc., a registered broker-dealer and member of the NASD and SIPC.