Aventine $160 million seven-year floater talked at Libor plus 587.5-612.5 bps, to price Friday

By Paul A. Harris

St. Louis, Dec. 9 - Price talk on Aventine Renewable Energy Inc.'s $160 million offering of seven-year senior secured floating-rate notes (B3/CCC+) is three-month Libor plus 587.5 basis points to 612.5 basis points, according to a syndicate source.

Pricing is expected on Friday.

Morgan Stanley and JP Morgan are joint bookrunners for the Rule 144A offering. Banc of America Securities LLC and Bear Stearns & Co. are co-managers.

The notes will be callable after two years at 103, with the call premium declining annually from the first call date to 102, 101, and to par. The notes will also contain an equity clawback for 35%.

Proceeds will be used to fund the expansion at the Illinois facility and to fund a dividend to shareholders.

Aventine is a Pekin, Ill.-based producer and marketer of ethanol.

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