Web exclusive posted Oct. 18, 2007, at 12:12 p.m. CDT

Advanced BioEnergy’s (ABE) wholly-owned subsidiary Heartland Grain Fuels LP has closed on a $118 million financing deal for its South Dakota ethanol production facilities. The financing consists of a $98.7 million senior secured facility (consisting of a $90.7 million construction and term facility and an $8 million working capital facility) and a $19 million tax exempt, subordinate secured financing. The credit facilities will be used in combination to refinance Heartland Grain Fuels’ existing debt, complete construction of a 40 MMgy expansion facility at Heartland’s existing Aberdeen plant and pay for operating costs at both the Aberdeen and Huron plants.

West LB AB (New York branch) was the lender and was co-lead arrangers with RaboBank and Santander. Doughterty & Company LLC acted as financial advisor.

“We believe that this financing provides us with sufficient debt financing to complete construction of our 40 MMgy Aberdeen expansion project,” ABE CEO Revis L. Stephenson III said. “Together with our third facility in Fairmont, Nebraska and our existing operating facilities in Huron and Aberdeen, ABE’s ethanol production capacity when fully operational will approach 200 MMgy. Further, this financing demonstrates our lenders’ confidence in our business model.”