PR.com: Business Directory, Press Releases, Jobs, Products, Services, Articles
 
Businesses Articles Press Releases Follow @PRcom
Press Release Pricing | News by Category | News by Country | News by US Region | Recent News | PR.com News on Your Site
 

Press Releases

 
Krieg DeVault

Press Release


Receive press releases from Krieg DeVault: By Email RSS Feeds:

Krieg DeVault, and Client Stern Brothers & Co., Close First-of-Its-Kind Financing for Myriant Corporation’s Lake Providence, LA Commercial Bio-Succinic Acid Plant


Indianapolis, IN, June 21, 2012 --(PR.com)-- The law firm of Krieg DeVault LLP, counsel to St. Louis based Stern Brothers & Co., recently assisted in closing Myriant Corporation’s Lake Providence, Louisiana commercial bio-succinic acid plant. This first-of-its-kind transaction included taxable bonds partially backed by the United States Department of Agriculture (“USDA”) through its Business & Industry (“B&I”) loan guaranty program, a grant from the United States Department of Energy (“DOE”) and an equity investment by Myriant Corporation.

“We are extremely excited to have acted as transaction and placement agent counsel with our client Stern Brothers & Co. to close another history making transaction,” said John R. Kirkwood, Partner and legal team leader on the Lake Providence transaction. “The level of work and out-of-the-box thinking required by our legal team to accomplish our client’s goals with this first-ever transaction was a welcomed challenge for our firm. Financing of this kind is an historic step for the USDA and the biochemicals industry.”

Continuing its sector leadership in the alternative energy and chemicals space, Stern Brothers used a USDA B & I loan guaranty to credit enhance the project finance bonds, a first-time application of a B & I guaranty to bonds, and privately placed Myriant’s bonds with institutional investors. “Structuring the transaction to maximize the value of the USDA guarantee using bonds expanded the pool of potential investors and significantly lowered the cost of capital for the project,” said John May, Managing Director for Stern Brothers.

The $25 million USDA B&I Loan Guarantee complements a $50 million cooperative agreement that Myriant received from the United States Department of Energy (DOE) and a $10 million grant from the Lake Providence Port Commission and the Louisiana Department of Transportation. Of the $25 million in bonds sold, $15 million are guaranteed by the USDA under the B&I program. Sales of the unsecured portion of the bonds indicate investor confidence in the future financial performance of Myriant's Lake Providence bio-refinery.

Myriant’s commercial scale bio-succinic acid production facility will be capable of producing 30 million pounds per year of bio-succinic acid. Myriant’s cost-advantaged bio-succinic acid will be a “drop-in” replacement for petroleum-derived succinic acid and other chemical intermediates.

About Krieg DeVault LLP
Krieg DeVault LLP is a 150-professional, diversified law firm representing a wide variety of local, regional and national clients. It is a business-focused law firm with offices in Indianapolis, Carmel, Noblesville, Mishawaka, and Schererville, Indiana; Chicago, Illinois; Atlanta, Georgia; Minneapolis, Minnesota; and Boca Grande, Florida. The firm’s attorneys have significant experience in key areas that address the needs of a diversified client base.
Contact Information
Krieg DeVault
Matt Small
317.636.4341
Contact
www.kriegdevault.com

Click here to view the list of recent Press Releases from Krieg DeVault
Promote Your Business