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VeraSun Energy Announces New Revolving Credit Facility Commitment
VeraSun Energy Corp., one of the nation's largest ethanol producers, today announced that it has entered into a revolving credit facility commitment letter (the "Commitment Letter") with UBS Investment Bank ("UBS"), under which UBS has committed to provide VeraSun with a secured revolving credit facility of up to $125 million. The company expects to enter into the new credit facility no later than May 31, 2008. The entry into the new credit facility is subject to the completion of UBS' due diligence, mutually agreeable loan documents and other customary conditions. The credit facility will have a 3-year term and will be secured by accounts receivable and inventory of certain of VeraSun's subsidiaries. VeraSun intends to use proceeds derived from the credit facility for general corporate purposes. The credit facility will replace an existing $30 million secured revolving credit facility.
"We are pleased to enter into this Commitment Letter with UBS," said Danny Herron, President & Chief Financial Officer, "This credit facility will upon closing, provide additional liquidity sources to support our accelerated growth."
About VeraSun Energy Corporation
VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, S.D., is a leading producer of renewable fuel. Founded in 2001, the company has more than one billion gallons of annual ethanol production capacity through 11 operating facilities. Six additional facilities are currently either under construction or development with a combined capacity of 660 million gallons. Upon completion of the new facilities, VeraSun Energy will have an annual production capacity of approximately 1.75 billion gallons. The company announced it started construction at its Aurora facility to extract oil from dried distillers grains for use in biodiesel production.
VeraSun markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(TM). For more information, please visit VeraSun Energy's websites at http://www.verasun.com or http://www.VE85.com.
Forward-Looking Statement
We have included or incorporated by reference in this document financial estimates and other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These estimates and statements are based upon the current beliefs and expectations of the management of VeraSun, are subject to risks and uncertainties outside of our control, and actual results might differ materially from these estimates and statements. VeraSun is not under any obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise.
Some of the factors that may cause actual results, developments and business decisions to differ materially from those described in any forward-looking statements include the volatility and uncertainty of corn, natural gas, ethanol and unleaded gasoline prices; the results of our merger with US BioEnergy; our ability to develop an oil extraction business; the results of our recently acquired facilities; the results of our hedging transactions and other risk mitigation strategies; operational disruptions at our facilities; our ability to implement our expansion strategy as planned or at all; our ability to locate and integrate potential future acquisitions; development of infrastructure related to the sale and distribution of ethanol; excess production capacity in our industry; our ability to compete effectively in our industry; changes in or elimination of governmental laws, tariffs, trade or other controls or enforcement practices; environmental, health and safety laws, regulations and liabilities; our reliance on key management personnel; future technological advances; limitations and restrictions contained in the instruments and agreements governing our indebtedness; our ability to raise additional capital and secure additional financing; and costs of construction and equipment, as more fully described in the "Risk Factors" sections of our annual report on Form 10-K for the year ended December 31, 2007 and our quarterly report on Form 10-Q for the quarter ended March 31, 2008.
Contact:
Patty Dickerson
+1-605-696-7236
pdickerson@verasun.comor
Source: VeraSun Energy Corp.
"We are pleased to enter into this Commitment Letter with UBS," said Danny Herron, President & Chief Financial Officer, "This credit facility will upon closing, provide additional liquidity sources to support our accelerated growth."
About VeraSun Energy Corporation
VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, S.D., is a leading producer of renewable fuel. Founded in 2001, the company has more than one billion gallons of annual ethanol production capacity through 11 operating facilities. Six additional facilities are currently either under construction or development with a combined capacity of 660 million gallons. Upon completion of the new facilities, VeraSun Energy will have an annual production capacity of approximately 1.75 billion gallons. The company announced it started construction at its Aurora facility to extract oil from dried distillers grains for use in biodiesel production.
VeraSun markets E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85(TM). For more information, please visit VeraSun Energy's websites at http://www.verasun.com or http://www.VE85.com.
Forward-Looking Statement
We have included or incorporated by reference in this document financial estimates and other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These estimates and statements are based upon the current beliefs and expectations of the management of VeraSun, are subject to risks and uncertainties outside of our control, and actual results might differ materially from these estimates and statements. VeraSun is not under any obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise.
Some of the factors that may cause actual results, developments and business decisions to differ materially from those described in any forward-looking statements include the volatility and uncertainty of corn, natural gas, ethanol and unleaded gasoline prices; the results of our merger with US BioEnergy; our ability to develop an oil extraction business; the results of our recently acquired facilities; the results of our hedging transactions and other risk mitigation strategies; operational disruptions at our facilities; our ability to implement our expansion strategy as planned or at all; our ability to locate and integrate potential future acquisitions; development of infrastructure related to the sale and distribution of ethanol; excess production capacity in our industry; our ability to compete effectively in our industry; changes in or elimination of governmental laws, tariffs, trade or other controls or enforcement practices; environmental, health and safety laws, regulations and liabilities; our reliance on key management personnel; future technological advances; limitations and restrictions contained in the instruments and agreements governing our indebtedness; our ability to raise additional capital and secure additional financing; and costs of construction and equipment, as more fully described in the "Risk Factors" sections of our annual report on Form 10-K for the year ended December 31, 2007 and our quarterly report on Form 10-Q for the quarter ended March 31, 2008.
Contact:
Patty Dickerson
+1-605-696-7236
pdickerson@verasun.comor
Source: VeraSun Energy Corp.