Valero Bids $477 Million Plus Working Capital
Secured Lenders Submit Credit Bids Totaling $516 Million for Remaining Assets
Sale Approval Hearing Scheduled for Tomorrow at Noon in Wilmington, Delaware
SIOUX FALLS, S.D., March 17 /PRNewswire-FirstCall/ -- VeraSun Energy Corp. today announced that it has selected Valero Renewable Fuels as the successful bidder for assets contained in the "VSE Group", in addition to ethanol production facilities in Albion, Neb., and Albert City, Iowa, following an auction in Wilmington, Del. The secured lenders submitted successful credit bids for each of the remaining facilities.
The VSE Group consists of production facilities in Aurora, S.D.; Charles City, Fort Dodge and Hartley, Iowa, and Welcome, Minn., and a development site in Reynolds, Ind.
Upon the conclusion of the auction, VeraSun selected Valero as the successful bidder to purchase the VSE Group facilities for a base purchase price of $350 million, $72 million for the US Bio Energy facility in Albert City, Iowa and $55 million for the ASA facility in Albion, Neb., plus working capital and other certain adjustments.
The secured lenders for the remaining facilities submitted successful credit bids. Dougherty Funding, LLC submitted a credit bid of $93 million for the Marion, S.D. production facility. A group of lenders led by AgStar Financial Services submitted a credit bid of $324 million for the remaining "US BioEnergy Group", which includes ethanol production facilities in Central City and Ord, Neb.; Dyersville, Iowa; Hankinson, N.D.; Janesville, Minn., and Woodbury, Mich. A group of lenders led by West LB AG submitted a credit bid of $99 million for the remaining "ASA Group" facilities, consisting of production facilities in Bloomingburg, Ohio and Linden, Ind.
VeraSun will seek approval of the successful bids at a sale hearing conducted by the US
|SOURCE VeraSun Energy Corporation|
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