Nova Biosource Fuels, Inc. (Amex: NBF) announced earlier this month that it entered into a $41 million senior secured credit facility with WestLB AG. The facility includes a $36 million construction loan that will convert to a term loan at the completion of Nova’s Seneca, Illinois, biodiesel refinery.
The financing also included a $5 million working capital facility.
"This credit facility provides an efficient capital structure for our Seneca refinery," said Kenneth Hern, Nova’s Chairman and CEO. "This financing, combined with the $55 million convertible debt offering completed in September 2007, gives us additional financial resources to fund our on-going plant construction."
Nova says its 60 million gallon per year biodiesel refinery under construction in Seneca, Illinois, continues on pace for mechanical completion in January 2008 and start-up operations should commence in February 2008 with substantial completion targeted for early summer 2008. e
About Nova Biosource Fuels, Inc.
Nova Biosource Fuels, Inc. is an energy company that refines and markets ASTM standard biodiesel and related co-products through the deployment of its proprietary, patented process technology, which enables the use of a broader range of lower cost feedstocks. Nova is focused on building and operating a number of Nova-owned biodiesel refineries, with a goal of attaining production capacity of between 180 to 220 million gallons of biodiesel fuel on an annual basis. In particular, it is investing to improve the profitability of its 10 million gallon per year biodiesel refinery in Clinton, Iowa, while also completing the construction of its 60 million gallon per year biodiesel refinery in Seneca, Illinois. Nova’s business strategy for the next three years includes building up to seven biodiesel refineries with production capacities ranging from 20 to 100 million gallons each per year.
About WestLB
WestLB AG is one of Germany’s leading financial services providers and offers the full range of products and services of a universal bank, focusing on lending, structured finance, capital market and private equity products, private banking, asset management, transaction services and real estate finance. WestLB has total assets of EUR 280 billion, as of September 30, 2007. For more information, visit http://www.westlb.com.
Loading...