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Aemetis Signs Terms of $100 million of Construction and Working Capital Debt Financing
Base Interest Rate of 8% for Capital Projects and 10% for Working Capital Line CUPERTINO, CA, Nov. 23, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Aemetis,
About this update from Aemetis, Inc
[{"type":"text","content":"Base Interest Rate of 8% for Capital Projects and 10% for Working Capital Line CUPERTINO, CA, Nov. 23, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Aemetis, Inc. (NASDAQ: AMTX), a renewable fuels company focused on negative carbon intensity products, announced today that it has signed a non-binding term sheet and is working towards completing $100 million of new debt financing from Third Eye Capital of Toronto, Canada. The debt financing is expected to be comprised of $50 million for carbon reduction projects and $50 million for working capital. Aemetis has repaid more than $55 million of its higher interest rate debt during 2021. The new, lower interest rate debt financing is expected to provide funding for the Aemetis initiatives that reduce the carbon intensity of renewable fuels, including sustainable aviation fuel (SAF), renewable diesel, carbon sequestration, and upgrades to the Keyes ethanol plant. Cash and grants of more than $32 million have already been invested in the Phase I, 45 million gallon per year, Carbon Zero renewable jet and diesel plant in Riverbank. This new debt facility is expected to provide the remaining funding to the project from Aemetis prior to completion of additional project debt financing. A $125 million USDA 9003 Biorefinery Assistance Program guaranteed loan has been signed by Aemetis and an additional $100 million under the USDA Renewable Energy for America Program is in process. The base interest rate for the $50 million carbon reduction project financing will be 8% per year. The base interest rate for the $50 million of working capital financing will be 10% per year. Both credit facilities are expected to have availability provisions based on the qualified use of funds and other factors. Additional consideration to the lender will include customary fees for 500,000 warrants at a $20 per share exercise price. “This new financing builds on our successful relationship with Third Eye Capital, the company’s senior lender since our first funding in 2008. We sincerely appreciate their ongoing support for carbon reduction projects and operations at Aemetis,” said Eric McAfee, Chairman and CEO of Aemetis. “This lower interest rate debt supports the development of the 90 million gallon per year Aemetis Carbon Zero sustainable aviation fuel and renewable diesel plant, but also fully funds the remaining...