Aventine Renewable Energy prices tender for $160 million floaters due 2011

New York, June 27 - Aventine Renewable Energy Holdings, Inc. announced it will pay $1,053.10 per $1,000 in its cash tender offer for its $160 million of senior secured floating-rate notes due 2011.

The total includes a consent payment of $30.00 per $1,000 that will be paid to those who tender by the consent deadline of 5 p.m. ET on June 29.

Pricing was set at 5 p.m. ET on June 27.

Aventine announced the tender on June 14 and said it was also soliciting consents to amend the note indenture, eliminating all of the restrictive covenants and certain events of default and releasing all of the collateral securing the notes.

The offer ends at 8 a.m. ET on July 13.

For each $1,000 principal amount, the company said it will base its payout on the present value of $1,030 - the amount payable on Dec. 15, the notes' first call date - discounted using the yield to maturity of the 2.875% Treasury due Nov. 30, 2006 and 50 basis points, minus accrued interest up to the payment date.

Holders who tender before the consent deadline will receive a consent payment equal to $30.00 per $1,000 principal amount of notes, included in the calculated payout.

Aventine is seeking consents from a majority of noteholders.

The company said it expects to use some initial public offering proceeds for the tender.

J.P. Morgan Securities Inc. is the dealer manager (212 270-7407) and MacKenzie Partners, Inc. is the information agent (call collect 212 929-5500 or 800 322-2885).

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

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