Today, Biofuel Energy Corp. announced that it had entered into a definitive agreement with certain affiliates of Greenlight Capital, Inc. and James R. Brickman pursuant to which Biofuel will acquire the equity interests of JBGL Builder Finance LLC and certain subsidiaries of JBGL Capital, LP from Greenlight and Brickman. JBGL is a series of real estate entities involved in the purchase and development of land for residential purposes, construction lending and home building operations. JBGL is currently owned and controlled by Greenlight and Brickman.
Pursuant to the terms of the agreement, BioFuel will acquire JBGL for $275 million, payable in cash and BioFuel common stock. The cash portion of the purchase price will be funded from the proceeds of a $70 million rights offering to be conducted by BioFuel and approximately $150 million in debt financing provided to BioFuel by Greenlight. Subject to the satisfaction of certain conditions, the acquisition of JBGL by BioFuel is expected to be consummated in October 2014.
Akin Gump represented Greenlight and JBGL. The deal team comprised corporate partners Kerry Berchem, David D’Urso and Zachary Wittenberg, tax partners Stuart Leblang and Dan Paulos, corporate counsel Renuka Drummond and Meng Ru and associates Nitzi Davis, Brian Oh, Kate Powers and David Snyder.
