Heron Lake BioEnergy calls 7¼% convertibles for July 1 redemption

Holders have until June 20 to convert notes into capital units

By Angela McDaniels

Tacoma, Wash., May 2 - Heron Lake BioEnergy, LLC will redeem all of its $4,143,000 outstanding 7¼% subordinated secured notes due 2018 on July 1 at par plus accrued interest up to but excluding the redemption date.

In lieu of redemption, holders can convert their notes into either class A or class B capital units at $0.30 per unit at any time prior to 6 p.m. ET on June 20, according to an 8-K filing with the Securities and Exchange Commission.

To the extent noteholders do not convert their notes prior to the redemption date, the company expects to use a combination of cash, cash equivalents and borrowings under its credit facilities to fund the redemption price.

Private company Heron Lake BioEnergy operates a natural gas-fired ethanol plant in Heron Lake, Minn.

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