Cardinal Ethanol Acquires Kansas Ethanol Facility

Cardinal Ethanol LLC (CRDE) has released an update to notify the public and investors about an entry into a material definitive agreement.

Cardinal Colwich, a subsidiary of Cardinal Ethanol, completed the acquisition of a Kansas-based ethanol production facility from Element LLC, assuming several key contracts to facilitate the operation.

This included a technology license for ethanol production, a water sharing agreement for operational needs, and a revised credit agreement to fund the acquisition and support working capital.

The credit agreement, which includes both revolving and term loans, is designed to ensure Cardinal Colwich’s financial obligations are met while providing additional credit facilities and maintaining specific financial ratios.

The loans are secured by property mortgages and assets of Cardinal Colwich and Cardinal Ethanol, with intercompany loans subordinated to the primary lender’s interests.

For a comprehensive understanding of the announcement, you can read the full document here.