Myriant’s Debt Deal: A Light at the End of a Long, Bio-Based Tunnel
by Jim Lane (Biofuels Digest) Myriant closes first bio-based chemicals loan under USDA’s Business and Industry Loan Guarantee Program. Industry’s first private bond placement under innovative structure developed to finance advanced industrial scale-up; Q1 2013 commercial start-up in sight
In Massachusetts, Myriant announced it closed a $25 million private bond placement for the construction of its flagship commercial bio-succinic acid plant located in Lake Providence, Louisiana.
Myriant is the first bio-based chemicals company to receive funding from USDA’s B&I Rural Development Loan Guarantee program. The B&I program is designed to improve the economic and environmental climate in rural communities by supporting the development of high quality local industry.
…We’ve heard about the three impossibles for some time. Impossible to get a project without the term of the offtake being at least equivalent to the term of the debt. Impossible to get a project funded without the feedstock contracts covering the entire portion of the loan. Impossible to get a project funded without the offtake 100% covered by contracts.
That may remain true for the bank side – but over here in bond world – the three Impossibles have been converted into the three “you’ll pay more, but it’s do-ables”.
Here, there was first-timer risk. Technology risk. Market risk. All absorbed in the rate. READ MORE