Alto Ingredients, Inc. (NASDAQ: ALTO), a leading
producer and distributor of specialty alcohols and essential
ingredients, today announced that it entered into a $125 million
senior secured term loan facility with certain funds managed by
Orion Infrastructure Capital (“OIC” or “Orion”). The term loan
allows for periodic draws in an aggregate amount up to $100
million, with an additional $25 million available subject to
satisfying certain conditions. The term loan matures in six years
and is not subject to scheduled amortization payments. The term
loan has a fixed annual interest rate of 10.0% with an original
issue discount of 1.5%. In connection with entering into the term
loan, Alto will issue up to 1.6 million shares of common stock to
OIC.
Alto Ingredients’ CFO, Bryon McGregor, said,
“The term loan gives us the capital we need to upgrade our plants
to produce higher value products with better margins. The facility
is also structured to give us tremendous flexibility – we can draw
the capital over time, when we need it, and there are no financial
covenants. Our near-term plans for the capital include expanding
corn oil production, corn storage and specialty alcohol production.
We also plan to pursue various protein and yeast production
expansion options, energy supply improvements, and carbon capture
sequestration opportunities.”
Ethan Shoemaker, Investment Partner and Head of
Infra Credit at OIC, added, “We are excited to partner with Alto
and help accelerate their strategic transformation by financing
capital expenditures to enhance production of high-value,
high-margin, and more sustainable products. This partnership
supports OIC’s goal to champion the reinvention of sustainable
infrastructure through investment partnerships. We are excited to
be both a lender and a shareholder of Alto and look forward to
supporting management as they execute the next phase of their
transformation.”
Guggenheim Securities, LLC acted as lead
placement agent and lead arranger and RBC Capital Markets, LLC
acted as arranger for the senior secured term loan facility.
About Alto Ingredients,
Inc.Alto Ingredients, Inc. (ALTO) is a leading producer
and distributor of specialty alcohols and essential ingredients.
The company is focused on products serving four key markets:
Health, Home & Beauty; Food & Beverage; Essential
Ingredients; and Renewable Fuels. The company’s customers include
major food and beverage companies and consumer products companies.
For more information, please visit www.altoingredients.com.
About OICWith approximately $3
billion in assets under management, OIC invests in North America
and select international markets. OIC’s unique partnership approach
– for entrepreneurs, by entrepreneurs – cultivates creative credit,
equity, and growth capital solutions to help middle market
businesses scale and deploy sustainable infrastructure. OIC’s
target investment sectors include energy efficiency, digital
infrastructure, social infrastructure, sustainable power
generation, renewable fuels, waste & recycling, water,
transportation, and agriculture. OIC was founded in 2015 by a team
of energy and sustainability veterans, successful infrastructure
investors, and former asset owners and industry operators. Across
OIC’s platform is a team of 36 professionals based in New York,
Houston and London. For more information, please
visit www.OIC.com.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995
Statements and information contained in this
communication that refer to or include Alto Ingredients’ estimated
or anticipated future results or other non-historical expressions
of fact are forward-looking statements that reflect Alto
Ingredients’ current perspective of existing trends and information
as of the date of the communication. Forward looking statements
generally will be accompanied by words such as “anticipate,”
“believe,” “plan,” “could,” “should,” “estimate,” “expect,”
“forecast,” “outlook,” “guidance,” “intend,” “may,” “might,”
“will,” “possible,” “potential,” “predict,” “project,” or other
similar words, phrases or expressions. Such forward-looking
statements include, but are not limited to, statements concerning
the benefits of the debt financing transaction; the cost, timing
and effects of, including the financial results deriving from, Alto
Ingredients’ capital improvement projects; and Alto Ingredients’
other plans, objectives, expectations and intentions. It is
important to note that Alto Ingredients’ plans, objectives,
expectations and intentions are not predictions of actual
performance. Actual results may differ materially from Alto
Ingredients’ current expectations depending upon a number of
factors affecting Alto Ingredients’ business. These factors
include, among others, Alto Ingredients’ ability to timely draw
down on all desired amounts from the debt financing; Alto
Ingredients’ ability to timely and effectively complete its capital
improvement and other projects and initiatives, and to operate them
as expected and attain the anticipated results; adverse economic
and market conditions, including for specialty alcohols and
essential ingredients; export conditions and international demand
for the company’s products; fluctuations in the price of and demand
for oil and gasoline; raw material costs, including production
input costs, such as corn and natural gas; and the effects of the
coronavirus pandemic, and its resurgence or abatement, and
governmental, business and consumer responses to the pandemic; and
the war in Ukraine and its effects on commodity prices, including
for wheat and corn, and supply chains. These factors also include,
among others, the inherent uncertainty associated with financial
and other projections; the anticipated size of the markets and
continued demand for Alto Ingredients’ products; the impact of
competitive products and pricing; the risks and uncertainties
normally incident to the specialty alcohol production, marketing
and distribution industries; changes in generally accepted
accounting principles; successful compliance with governmental
regulations applicable to Alto Ingredients’ facilities, products
and/or businesses; changes in laws, regulations and governmental
policies; the loss of key senior management or staff; and other
events, factors and risks previously and from time to time
disclosed in Alto Ingredients’ filings with the Securities and
Exchange Commission including, specifically, those factors set
forth in the “Risk Factors” section contained in Alto Ingredients’
Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on August 9, 2022.
Media Contact:Bryon McGregor, Alto Ingredients,
Inc., 916-403-2768, mediarelations@altoingredients.com
Company IR Contact:Michael Kramer, Alto
Ingredients, Inc., 916-403-2755,
Investorrelations@altoingredients.com
IR Agency Contact:Kirsten Chapman, LHA Investor
Relations, 415-433-3777, Investorrelations@altoingredients.com
OIC Contact:Reyno Norval, OIC, L.P.,
212-292-0345, reyno@oic.com
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