Range Fuels, Inc., a Broomfield, CO-based company focused on commercially producing low-carbon biofuels and clean renewable power, received a loan note guarantee from the U.S. Department of Agriculture and closed its related $80m bond issuance.
The funds will be used to partially finance the first two phases of construction of the company’s first commercial cellulosic biofuels plant using renewable and sustainable supplies of non-food biomass near Soperton, Georgia.
The first phase is scheduled to be mechanically complete this month, with production scheduled to begin in the second quarter of 2010.
The loan guarantee is a part of USDA’s Section 9003 Biorefinery Assistance Program authorized by the 2008 Farm Bill, which provides loan guarantees for commercial-scale biorefineries and grants for demonstration-scale biorefineries that produce advanced biofuels or any fuel that is not corn-based.
AgSouth Farm Credit, ACA, a leader in agricultural and rural loans and part of the Farm Credit System, was the lead lender on the loan, and Silicon Valley Bank and Morgan Keegan & Company, Inc. helped facilitate the financing of this bond transaction.
A conditional commitment to provide this loan note guarantee was first issued by the USDA on January 16, 2009.