Aemetis improves its finances with bridge-for-EB5 debt swap

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In California, Aemetis is reducing interest costs by 80% by using a $36M EB-5 Phase I funding and $50-million EB-5 Phase II funding — both with a 3% interest rate — to repay a 14% bridge loan.

The EB-5 Phase I funding was used to refinance the high interest rate loan for the company’s Keyes ethanol plant. The $36 million was raised from 72 foreign investors, and $25 million has been used to date for reducing a higher cost bridge loan.

Combined with the elimination of loan feed for a $68.5 million senior bridge loan, the company will save more than $12 million annually—an increase of about 60 cents/share, Aemetis says.

The proceeds from the $50-million funding announced today will also be released from escrow about a month after deposit, compared with the 18 months required by the earlier loan, says Aemetis chairman and CEO Eric McAfee.