A leading middle market investment bank placed project bonds to finance the development of a first commercial ethyl acetate production facility located adjacent to the Archer-Daniels-Midland Company ethanol production facility in Columbus, Nebraska. Faegre Baker Daniels represented the investment bank in the structuring and institutional placement of $24 million in bonds issued by the project developer, 60% of which are guaranteed by the U.S. Department of Agriculture.
The production facility will allow the developer, Prairie Catalytic, LLC, to use its proprietary technology to produce ethyl acetate from corn ethanol as opposed to the traditional petroleum-based product. Ethyl acetate is a low toxicity specialty solvent used in a variety of industrial and consumer product applications in paint, coating, printing ink and other industries. Faegre Baker Daniels advised on key aspects of the financing transaction, including structuring, due diligence, commercial contracting, debt security issuance and related matters.