Aventine Renewable Energy gets tenders for $155 million floaters due 2011

By Jennifer Chiou

New York, July 13 - Aventine Renewable Energy Holdings, Inc. announced it received tenders from holders of $155 million of its $160 million of senior secured floating-rate notes due 2011.

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

At the 5 p.m. ET on June 29 consent deadline, holders of 97% of the notes had tendered their securities. Aventine already said it will execute a supplemental indenture after having received the necessary consents.

The company solicited 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.

For each $1,000 principal amount, the company said it will pay $1,053.10, a payout based 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 tendered 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 sought 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. It began the offer on June 14.

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