PEKIN, Ill., Sept. 18, 2006 (PRIMEZONE) -- Aventine Renewable Energy Holdings, Inc. (NYSE:AVR), a leading producer, marketer and end-to-end supplier of ethanol, today announced that its indirect subsidiary, Aventine Renewable Energy, Inc., has amended its secured revolving credit facility with JPMorgan Chase Bank, N.A.
The amended facility makes available an aggregate amount of the lesser of $30 million, or the sum of 75% of accounts receivable plus 50% of inventory. The aggregate amount available may be used for letters of credit issued on behalf of the Borrower, as well as revolving loans. This is a $30 million reduction in availability from the previous $60 million limit. However, with the reduced availability, certain restrictive covenants and reporting requirements in effect under the previous facility have been eliminated. In addition, fees associated with the amended facility have also been reduced.
Ron Miller, Aventine's President and CEO said, "As a result of our recently completed initial public offering, Aventine now has substantial amounts of cash on its balance sheet. This eliminated our immediate need for the larger facility. The amendment to the revolving facility removes restrictive capital expenditure covenants that did not reflect the Company's growth plans, and also provides for lower interest rates, commitment fees, and administrative fees."
About Aventine
Aventine is a leading producer, marketer and end-to-end distributor of ethanol in the United States. Aventine produces, markets and distributes ethanol to leading energy companies. In addition to ethanol, it is also a producer of corn gluten feed, corn germ and brewers' yeast.
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 tax incentives;
-- Regulation currently under consideration pursuant to the
passage of the Energy Policy Act of 2005, which contains a
renewable fuel standard and other legislation mandating the
usage of ethanol or other oxygenate additives;
-- 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 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;
-- 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 its 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;
-- 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; and
-- Renewal of alliance partner contracts.