BioFuels Journal

Washington, DC—Baker & McKenzie LLP announced Dec. 12 that it represented First United Ethanol, LLC ("FUEL") in connection with the debt financing of its 100 million gallon-per-year ethanol facility currently under construction near Camilla, GA.

FUEL's project is the first large-scale ethanol project in the U.S. Southeast to be financed by a leading project finance institution. FUEL secured $115 million of senior secured debt facilities, including a $15 million working capital facility.

The financing closed on Dec. 6.

WestLB AG, New York Branch, arranged the debt facilities.

Morgan Keegan & Co. was the financial advisor to FUEL. Ethanol plants have historically been located in the "corn belt" of the U.S. Midwest, where they are close to sources of corn but far from the largest ethanol markets.

Increasingly, developers of ethanol plants are building "destination" ethanol plants in states such as California and New York (the largest markets for ethanol) or in places such as Georgia where strong regional demand creates opportunities for well-sited, well-engineered projects. Anthony Flagg, CEO of FUEL, stated "Our partnership with Morgan Keegan & Co. and Baker & McKenzie allowed us to successfully refinance this project, insuring our competitive strength and completion in a timely manner.

"The directors, management and, most importantly, stockholders of FUEL readily anticipate the successful completion of the first ethanol plant in Georgia." "We are pleased to have worked with First United Ethanol, LLC in arranging the debt financing for their ethanol project.

"The successful financing of this project proves that, even in spite of the current challenging credit markets, the financial community continues to support well-engineered projects located in areas of unserved demand for ethanol," said Chris Groobey, a project finance Partner in Baker & McKenzie's Washington, D.C. office.

Groobey added, "The successful closing of this transaction for First United Ethanol, LLC, will hopefully ensure a positive return on investment for the more than 800 local equityholders in FUEL who have supported this project over the years." Chris Groobey of Baker & McKenzie's Washington DC office led the transaction for FUEL.

Working with him were project finance associate Michael Egan from Washington and project finance partner Pauline Doohan, project finance associate Nathan Walker and real estate associate Chris Kopecky from Chicago.

Patrick Millsaps of The Millsaps Law Firm in Camilla, GA, acted as outside general counsel to FUEL. The FUEL transaction continues another strong year of successful biofuels transactions for Baker & McKenzie. For further details please contact: Chris Groobey at 202 835 4240.

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