Abengoa Bioenergy completes $237 million sale of three ethanol plants

By Caroline Salls

Pittsburgh, Sept. 26 – Abengoa Bioenergy US Holding LLC completed the $237 million sale of three ethanol plants in Madison, Ill., Mount Vernon, Ind., and York, Neb., to Green Plains Inc., according to a Green Plains news release.

Green Plains Inc. said it immediately sold the ethanol storage assets to Green Plains Partners LP for $90 million. The partnership said it used its revolving credit facility, which was recently expanded, to fund the purchase.

All three plants are currently operational and will add 236 million gallons per year of ethanol production capacity, Green Plains said.

“In the past 12 months, we have expanded our ethanol production capacity by approximately 50%,” Green Plains president and chief executive officer Todd Becker said in the release.

“Adding the Illinois and Indiana locations provide us with a bigger and more diverse geographic footprint.”

Carl Marks Advisors acted as financial advisers and DLA Piper acted as legal advisers to Abengoa Bioenergy.

The partnership said in a separate release that the storage and throughput agreement between Green Plains Partners and Green Plains Trade was amended as part of the transaction, increasing the minimum volume commitment to 296.6 million gallons per quarter.

Based in Chesterfield, Mo., Abengoa Bioenergy is an ethanol producer. It filed for bankruptcy on Feb. 24, 2016 in the U.S. Bankruptcy Court for the Eastern District of Missouri under the Chapter 11 case number 16-41161.

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