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HIGH PLAINS ANNOUNCES COMPLETION OF FINANCING ON NEW ETHANOL FACILITY IN NEBRASKA

 WICHITA, Kan., Nov. 16 /PRNewswire/ -- High Plains Corp. (NASDAQ-NMS: HIPC) today announced that financing on its new 30-million- gallon-per-year ethanol production facility being constructed in York, Neb., was finalized on Friday, Nov. 12, 1993.
 The lenders, a consortium of banks, are led by Bank One, Indianapolis, and made up of four additional banks, all from Nebraska: FirsTier Bank, Omaha; First National Bank of Omaha; The First National Bank (of York); and York State Bank and Trust Co.
 The terms of the financing call for a $25 million construction loan requiring interest payments at the rate of 1 1/4 percent over Bank One prime. On the date the plant begins operating (start up is projected for July 1, 1994), the construction loan will be converted to a mortgage with a 5 year term and with a rate of 1 1/2 percent over Bank One prime, or at the company's option, to a fixed rate then quoted by the bank on 5 year commercial loans to similarly rated customers.
 Construction on the York facility has been proceeding, with all dirtwork completed, pilings and concrete work well under way, and with the dismantling and moving of the useable and transportable equipment from the New Iberia, La., ethanol production facility now complete.
 In addition to the $3 million purchase of the New Iberia facility, which consisted of all new equipment, the company purchased approximately 75 percent of the equipment from the Franklin, Ky. ("Kentucky Ag") plant. These two purchases have allowed the company to project its completed cost of the plant at $30 million, significantly lower than the industry average of $60-$75 million for a new 30-million- gallon-per-year facility.
 Stanley E. Larson, the company's chief executive officer, stated, "This financing commitment is another large accomplishment towards our goal to expand production and enhance the company's profitability. The low construction cost of this state-of-the-art facility will minimize our future interest and depreciation expenses allowing us to produce for less."
 Larson also noted that ethanol prices in the company's markets have increased recently due to the start of the wintertime Federal Oxygen Program. The duration of the program this winter will average 5-6 months compared to the 3 month program duration last winter.
 Based in Wichita, High Plains is the only publicly traded company whose sole business is ethanol. It is one of the largest producers of ethanol west of the Mississippi River, with 20 million gallons per year of current capacity (expanding to 50 million gallons capacity with the new facility). Clean burning ethanol reduces pollutants in automotive gasoline and increases octane levels for better engine performance without increasing gas pump prices.
 -0- 11/16/93
 /CONTACT: Raymond G. Friend of High Plains, 316-269-4310; or Carl Thompson of Carl Thompson Associates, 303-494-5472/
 (HIPC)


CO: High Plains Corp. ST: Kansas IN: OIL SU:

BB -- DV003 -- 5000 11/16/93 10:53 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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