Aemetis closes new $100 million credit facilities with lower interest rates

Aemetis Inc. has closed on two new, lower interest rate credit facilities with aggregate availability of up to $100 million, comprised of up to $50 million for projects that produce lower carbon intensity renewable products and up to $50 million for working capital. In connection with the closing of the new credit facilities, Aemetis repaid $16 million of higher interest rate debt, building upon the more than $60 million of higher interest rate debt repaid during 2021.

The base interest rates under the new credit facilities are 8 percent for capital projects and 10 percent for working capital financing and were provided by Third Eye Capital of Toronto, Canada, which has funded Aemetis as a senior lender since 2008. The credit facilities are expected to provide funding for the Aemetis projects that reduce the carbon intensity of renewable fuels, including a zero carbon intensity solar array and extensive process equipment electrification upgrades to the Keyes ethanol plant, a sustainable aviation fuel (SAF) and renewable diesel plant, and carbon sequestration facilities.

“This new, lower-cost financing builds on our relationship with Third Eye Capital that began with our first funding in 2008,” said Eric McAfee, chairman and CEO of Aemetis. “We sincerely appreciate their support for carbon-reduction investments and other growth projects at Aemetis. This lower interest rate debt funding is designed to fund the development of the 90 million gallon per year Carbon Zero 1 sustainable aviation fuel and renewable diesel plant, fully fund the remaining Keyes plant upgrades to install solar and mechanical vapor recompression, and fully fund the two characterization wells, engineering and permitting for the Aemetis Carbon Capture subsidiary to submit EPA Class VI CO2 sequestration licenses at our two biofuels plant sites.”

Both credit facilities have availability provisions based on the qualified use of funds and other factors. Consideration to the lender includes a warrant to purchase 500,000 shares of Aemetis common stock at a $20 per share exercise price and a warrant to purchase 100,000 shares of Aemetis common stock at an exercise price equal to the 30-day VWAP of Aemetis common stock ($10.20).

The new debt facilities are expected to provide the remaining funding required for engineering and permitting of the Carbon Zero renewable jet and diesel plant in Riverbank, California, from Aemetis prior to completion of project debt financing. Aemetis has invested more than $32 million of cash and grants in the renewable jet and diesel plant.

In addition to a $3.2 billion, 10-year renewable diesel supply agreement with a leading travel stop company, Aemetis has signed $2.5 billion of sustainable aviation fuel supply agreements with Delta Air Lines, American Airlines and Japan Airlines to supply a 40 percent blend of SAF to San Francisco Airport. An additional $1 billion of memorandum of understandings have been signed with other members of the oneworld Alliance, which are expected to be converted to signed agreements by the end of the second quarter.