Daily News: January 20, 2014

Carl Marks Advises in BioFuel’s Ethanol Plants Sale

Carl Marks Advisory Group acted as investment banker in the sale of two ethanol plants owned by BioFuel Energy Corp. to Green Plains Renewable Energy.

The investment banking practice at Carl Marks served as the exclusive financial advisor to First National Bank of Omaha, the administrative agent for the lenders to BioFuel. The lender group completed the sale to Green Plains simultaneous to entering into a Deed in Lieu of Foreclosure Agreement with BioFuel. Carl Marks introduced Green Plains to acquire the two plants from the lender group, following the expiration of BioFuel’s grace period on July 30, 2013 to explore a potential sale of one or both of the company’s ethanol plants.

The two facilities conveyed included the Buffalo Lake plant, located in Fairmont, MN, and the Pioneer Trail plant in Wood River, NE, and have a combined annual production capacity of approximately 220 million gallons. The plants were sold to Green Plains for $108 million plus working capital. Kutak Rock served as legal counsel to the lender group.

“The sale of the Buffalo Lake and Pioneer Trail ethanol plants to Green Plains Renewable Energy is yet another transaction that exemplifies Carl Marks’ leadership in the advanced biofuels markets,” said Christopher Wu, partner at Carl Marks Advisory Group. “Our team’s deep sector expertise and insight into the marketplace continue to prove invaluable in maximizing value for producers and investors.”

Carl Marks has successfully advised on engagements in the ethanol industry sector representing nearly four billion gallons of aggregate domestic production capacity on behalf of its clients.

Christopher Wu, Scott Webb, C. Scott Chabina and Matt McInerney led the investment banking team for Carl Marks Advisory Group. Jeffrey Wegner and Joseph Kavan served as lead counsel on behalf of Kutak Rock.