GreenField Ethanol sets roadshow for C$175 million five-year senior second-lien notes

By Cristal Cody

Prospect News, Oct. 19 - GreenField Ethanol Inc. intends to hold a roadshow for a C$175 million offering of five-year senior second-lien notes (DBRS: B), according to an offering memorandum dated Wednesday.

GreenField Ethanol will hold a roadshow for the notes due 2016 from Monday through Nov. 2 in Vancouver, B.C., Montreal and Toronto.

Scotia Capital Inc. is the lead manager. Co-managers are Macquarie Capital Markets Canada Ltd., Societe Generale (Canada) and TD Securities Inc.

The notes are non-callable for three years. The securities have a change-of-control put at 101% and an equity clawback for up to 35% in the first three years. The notes also have a Canada call at 50 basis points over the Canadian government benchmark.

The guarantors are GreenField Ethanol (Johnstown) Inc.; GreenField Ethanol (Hensall) Inc.; GreenField Hensall LP; GreenField Hensall GP Inc.; Pharmco Products Inc.; Aaper Alcohol and Chemical Co., Aaper Holdings Inc.; GreenField Ethanol of Quebec Inc. and all future restricted subsidiaries of GreenField.

Proceeds will be used to repay debt, to terminate amounts outstanding under existing interest rate swap agreements and for general corporate purposes.

Ontario-based GreenField Ethanol is Canada's largest ethanol company and produces industrial and beverage alcohol, fuel ethanol and distillers' grains.

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