Rhode Island Bioenergy Facility closes $20M loan to complete construction

In Rhode Island, Anaergia Inc. announced that its subsidiary Rhode Island Bioenergy Facility, LLC (“RIBF”) has closed a $20 million term loan with East West Bank, a California Corporation, to finance remaining construction and commissioning of the RIBF project in the Town of Johnston, Rhode Island, USA and working capital. This financing has a seven-year term, and bears interest on US dollar denominated drawn funds at an annual rate equal to the prime rate as published in the Wall Street Journal (or another similar publication selected by the lender) plus 1.25%, subject to adjustment based on a swap agreement to be entered into within ten days after closing, and a floor of 7.5%. The loan is subject to certain positive and negative covenants that are customary for transactions of this nature, including liens and security interests in assets of RIBF.