By Toni Weeks
San Luis Obispo, Calif., July 1 – Southwest Iowa Renewable Energy, LLC said it completed $26.2 million of subordinated term loan notes due 2023 at Libor plus 625 basis points.
Proceeds of the notes were used to refinance the remaining balance of outstanding subordinated debt, which was scheduled to mature in August.
According to a press release, Southwest Iowa also completed a $66 million senior credit agreement with Farm Credit Services of America and CoBank on Tuesday at an interest rate of Libor plus 335 bps. The credit facility, which matures in 2023, is comprised of a $30 million term loan and a $36 million revolving term loan. Proceeds were used to refinance senior bank debt that was scheduled to mature in August.
The company also reported that it paid a total of $26.8 million to its subordinated lenders.
“These agreements reduce our interest expense, reduce our debt service payments and solidify our credit availability for the next five years,” president and chief executive officer Brian Cahill said in a press release. “Our ability to pay down over half of our subdebt combines with our March 31, 2014 book value per unit of $5,447 to provide a dramatically stronger balance sheet for our investors. We have paid off more than $57 million in debt this year.”
Southwest Energy is an ethanol producer based in Council Bluffs, Iowa.
| Issuer: | Southwest Iowa Renewable Energy, LLC
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| Issue: | Subordinated term loan notes
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| Amount: | $26.2 million
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| Interest rate: | Libor plus 625 bps
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| Maturity: | 2023
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