Aemetis Reduces Senior Bridge Loan by $6 million with Phase I EB-5 Funding
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86% of $36 million EB-5 Phase I Funding Received by the Company; EB-5 Financing is Repaying 14% High Cost Bridge Loan with 3% Low Cost, Long Term Funding
Aemetis, Inc. (NASDAQ: AMTX), an advanced fuels and renewable chemicals company, announced that $6 million has been received from EB5 funding, resulting in 86% of the $36 million EB-5 Phase I funding having been received by the company. The $6 million repays the existing 14% interest rate bridge loan with 3% interest rate, long term EB-5 funding.
Under the EB-5 Phase I funding, Aemetis offered subordinated notes in the amount of $500,000 per note to refinance the high interest rate bridge loan for the existing Keyes ethanol plant, and raised $36 million from 72 foreign investors. To date, $31 million of this amount has been released from the EB-5escrow account to the company and used to reduce a higher cost bridge loan held by our senior lender. After applying the $6 million, the senior bridge loan reduced to $62.5 million.
With an EB-5 project track record established, Aemetis recently commenced a $50 million Phase II funding in September 2016. Aemetis' financing plan is to repay its high cost senior bridge loan with low cost EB-5 funding and funds from operations. This repayment of the senior bridge loan is expected to result in significant interest rate savings.