EX-99.1
4
a08-16564_1ex99d1.htm
EX-99.1
Exhibit 99.1
Contact: Les Nelson
Director - Investor Relations
(309) 347-9709
Aventine Raises $97.1 Million from
the Sale of Auction Rate Securities
PEKIN,
IL, (June 13, 2008) - Aventine Renewable Energy Holdings, Inc. (NYSE:
AVR), a leading producer, marketer and end-to-end
provider of clean renewable energy, today announced that it has sold all of the
auction rate securities it previously held.
The
Company sold $127.2 million par value of student loan based auction rate
securities to various parties for cash totaling approximately $97.1
million. In its first quarter ended March 31,
2008, the Company had recorded an impairment charge of $21.6 million related to
the remaining auction rate securities it held at March 31, 2008. As a result of the recent sales, the Company will
now record an additional loss on the sale of these securities of $8.5 million
in the second quarter of 2008.
Ronald
H. Miller, Aventine's President and Chief Executive Officer said, "The funds
received from the sale of the auction rate securities will be used to fund plant
construction, which remains an integral part of our growth strategy. We expect to begin ethanol and DDGS
production at our new Aurora, Nebraska and Mt. Vernon, Indiana plants currently
under construction in the first quarter of 2009 as scheduled".
With
the cash raised from the sale of the auction rate securities, and including both
cash on hand and borrowing availability under its liquidity facility as of March 31,
2008, the Company would have had liquidity available to it in excess of $300
million. As of March 31, 2008, the
Company needed approximately $250 million to complete its two new production
facilities. In addition, the Company is
continuing discussions with banks to increase the amount of liquidity available
to it under a revolving asset based loan facility. Existing debt agreements permit the Company
to increase its senior credit facilities by another $75 million, potentially
further strengthening the Company's liquidity position.
About
Aventine
Aventine
is a leading producer, marketer and end-to-end distributor of ethanol to many
leading energy companies in the United States.
Aventine is also a marketer and distributor of biodiesel. In addition to ethanol, Aventine also
produces distillers grains, corn gluten feed, corn germ and brewers'
yeast. Our internet address is
www.aventinerei.com.
Forward
Looking Statements
Certain
information included in this press release may be deemed to be "forward looking
statements" within the meaning of section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of
historical facts, included in this press release, are forward looking
statements. Any forward looking statements
are not guarantees of Aventine's future performance and are subject to risks
and uncertainties that
could
cause actual results, developments and business decisions to differ materially
from those contemplated by such forward looking statements. Aventine disclaims any duty to update any
forward looking statements. Some of the
factors that may cause Aventine's actual results, developments and business
decisions to differ materially from those contemplated by such forward looking
statements include the following:
·
Changes in or elimination of laws, tariffs,
trade or other controls or enforcement practices such as:
·
National,
state or local energy policy;
·
Federal
ethanol and biodiesel tax incentives;
·
Regulation
currently proposed and/or under consideration which may increase the existing
renewable fuel standard and other legislation mandating the usage of ethanol or
biodiesel;
·
State
and federal regulation restricting or banning the use of Methyl Tertiary Butyl
Ether;
·
Environmental
laws and regulations applicable to Aventine's operations and the enforcement
thereof;
·
Changes in weather and general economic
conditions;
·
Overcapacity within the ethanol, biodiesel
and petroleum refining industries;
·
Total United States consumption of gasoline;
·
Availability and costs of products and raw
materials, particularly corn, coal and natural gas;
·
Labor relations;
·
Fluctuations in petroleum prices;
·
The impact on
margins from a change in the relationship between prices received from the sale
of co-products and the price paid for corn;
·
Aventine's or its employees' failure to
comply with applicable laws and regulations;
·
Aventine's ability to generate free cash flow
to invest in its business and service any indebtedness;
·
Limitations and restrictions contained in the
instruments and agreements governing Aventine's indebtedness;
·
Aventine's ability to raise additional
capital and secure additional financing, and our ability to service such debt,
if obtained;
·
Aventine's ability to retain key employees;
·
Liability resulting from actual or potential
future litigation;
·
Competition;
·
Plant shutdowns or disruptions at our plant
or plants whose products we market;
·
Availability of rail cars and barges;
·
Potential decreases in marketing alliance
volumes resulting from the acquisition of marketing alliance partners by our
competitors, the reduction of production capacity or abandonment of announced
projects by marketing alliance partners for economic reasons, the creation of
similar marketing alliances by our competitors and other failures to renew
marketing alliance contracts;
·
Our ability to receive and/or renew permits
to construct and/or commence operations of our proposed capacity additions in a
timely manner, or at all; and
·
Fluctuations in
earnings resulting from increases or decreases in the value of ethanol or
biodiesel inventory
2

EX - 99 . 1 4 a08 - 16564 _ 1ex99d1 . htm EX - 99 . 1 Exhibit 99 . 1 Contact : Les Nelson Director - Investor Relations ( 309 ) 347 - 9709 Aventine Raises $ 97.1 Million from the Sale of Auction Rate Securities PEKIN , IL , ( June 13 , 2008 ) - Aventine Renewable Energy Holdings , Inc . ( NYSE : AVR ) , a leading producer , marketer and end - to - end provider of clean renewable energy , today announced that it has sold all of the auction rate securities it previously held . The Company sold $ 127.2 million par value of student loan based auction rate securities to various parties for cash totaling approximately $ 97.1 million . In its first quarter ended March 31 , 2008 , the Company had recorded an impairment charge of $ 21.6 million related to the remaining auction rate securities it held at March 31 , 2008 . As a result of the recent sales , the Company will now record an additional loss on the sale of these securities of $ 8.5 million in the second quarter of 2008 . Ronald H . Miller , Aventine 's President and Chief Executive Officer said , " The funds received from the sale of the auction rate securities will be used to fund plant construction , which remains an integral part of our growth strategy . We expect to begin ethanol and DDGS production at our new Aurora , Nebraska and Mt . Vernon , Indiana plants currently under construction in the first quarter of 2009 as scheduled " . With the cash raised from the sale of the auction rate securities , and including both cash on hand and borrowing availability under its liquidity facility as of March 31 , 2008 , the Company would have had liquidity available to it in excess of $ 300 million . As of March 31 , 2008 , the Company needed approximately $ 250 million to complete its two new production facilities . In addition , the Company is continuing discussions with banks to increase the amount of liquidity available to it under a revolving asset based loan facility . Existing debt agreements permit the Company to increase its senior credit facilities by another $ 75 million , potentially further strengthening the Company 's liquidity position . About Aventine Aventine is a leading producer , marketer and end - to - end distributor of ethanol to many leading energy companies in the United States . Aventine is also a marketer and distributor of biodiesel . In addition to ethanol , Aventine also produces distillers grains , corn gluten feed , corn germ and brewers ' yeast . Our internet address is www.aventinerei.com . Forward Looking Statements Certain information included in this press release may be deemed to be " forward looking statements " within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 . All statements , other than statements of historical facts , included in this press release , are forward looking statements . Any forward looking statements are not guarantees of Aventine 's future performance and are subject to risks and uncertainties that could cause actual results , developments and business decisions to differ materially from those contemplated by such forward looking statements . Aventine disclaims any duty to update any forward looking statements . Some of the factors that may cause Aventine 's actual results , developments and business decisions to differ materially from those contemplated by such forward looking statements include the following : · Changes in or elimination of laws , tariffs , trade or other controls or enforcement practices such as : · National , state or local energy policy ; · Federal ethanol and biodiesel tax incentives ; · Regulation currently proposed and / or under consideration which may increase the existing renewable fuel standard and other legislation mandating the usage of ethanol or biodiesel ; · State and federal regulation restricting or banning the use of Methyl Tertiary Butyl Ether ; · Environmental laws and regulations applicable to Aventine 's operations and the enforcement thereof ; · Changes in weather and general economic conditions ; · Overcapacity within the ethanol , biodiesel and petroleum refining industries ; · Total United States consumption of gasoline ; · Availability and costs of products and raw materials , particularly corn , coal and natural gas ; · Labor relations ; · Fluctuations in petroleum prices ; · The impact on margins from a change in the relationship between prices received from the sale of co - products and the price paid for corn ; · Aventine 's or its employees ' failure to comply with applicable laws and regulations ; · Aventine 's ability to generate free cash flow to invest in its business and service any indebtedness ; · Limitations and restrictions contained in the instruments and agreements governing Aventine 's indebtedness ; · Aventine 's ability to raise additional capital and secure additional financing , and our ability to service such debt , if obtained ; · Aventine 's ability to retain key employees ; · Liability resulting from actual or potential future litigation ; · Competition ; · Plant shutdowns or disruptions at our plant or plants whose products we market ; · Availability of rail cars and barges ; · Potential decreases in marketing alliance volumes resulting from the acquisition of marketing alliance partners by our competitors , the reduction of production capacity or abandonment of announced projects by marketing alliance partners for economic reasons , the creation of similar marketing alliances by our competitors and other failures to renew marketing alliance contracts ; · Our ability to receive and / or renew permits to construct and / or commence operations of our proposed capacity additions in a timely manner , or at all ; and · Fluctuations in earnings resulting from increases or decreases in the value of ethanol or biodiesel inventory 2
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