Southwest Iowa Renewable Energy to sell $14.25 million convertibles

By Susanna Moon

Chicago, Feb. 21 - Southwest Iowa Renewable Energy, LLC plans to sell $14,251,000 of convertible subordinated term notes due Aug. 14, 2014 on a non-brokered best-efforts basis, according to a 424B3 filing with the Securities and Exchange Commission.

Interest will be Libor plus 750 basis points, payable in cash or in kind at the issuer's option.

Proceeds will be used to refinance some outstanding debt and for working capital.

The offering expected to end by Dec. 31, 2012.

The minimum note purchase is $15,000, and investors may purchase additional amounts of notes in integral amounts of $3,000.

The company said that because it plans to pay interest in kind, it registered $14,251,000 principal amount of notes based on the assumption it issues $10 million principal amount of notes in the offering and incurs $2,633,462 of in-kind interest over the life of the notes - based on an assumed interest rate of 8.28% - plus the allowance of an additional $1,617,538 of in-kind interest.

The notes are convertible into the company's series A units at a ratio of one unit issued for every $3,000 of notes.

The notes are callable at any time.

Southwest Iowa Renewable Energy announced plans to offer $14.25 million of the convertibles in an S-1 filing with the SEC on April 14, 2010.

The issuer is an ethanol producer based in Council Bluffs, Iowa.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.