Haynes and Boone Represents Panda Ethanol In Debt Financing Completion

August 02, 2006

CONTACT:
Roy R. Reynolds
Haynes and Boone, LLP
713.547.2098 (office)
713.204.3973 (cell)
roy.reynolds@haynesboone.com

HOUSTON – Haynes and Boone LLP announced Tuesday it represented Panda Ethanol Inc. as the company completed the $188 million debt financing on its 100 million gallon ethanol plant in Hereford, Texas.  The law firm also helped Panda on its announced merger with Cirracor Inc.

Panda Ethanol chief legal officer and general counsel L. Stephen Rizzieri and senior counsel Russell Petterson turned to Haynes and Boone partners Janice Sharry, Robert Ladd, Thomas Yang, Taylor Wilson, Mary Mendoza and associate Casey Cohn for counsel on both deals.

Dallas-based Panda said Monday it will immediately begin facility construction on the 380-acre site and expects ethanol production to begin in the second half of 2007.  The plant will “gasify” up to 1 billion pounds of cow manure each year, making it the largest biomass-fueled ethanol refinery in the U.S.

Societe Generale Corporate & Investment Banking arranged the senior debt financing consisting of a $158.1 million senior secured credit facility which includes a $5 million working capital facility and a letter of credit supporting $50 million in tax-exempt bonds that were issued by the Red River Authority of Texas. Additionally, the project has arranged a $30 million subordinated debt credit facility.  Panda had previously announced a $90 private equity placement.

Panda also announced Monday that it entered into a merger agreement with Cirracor, and expects the merger to be completed in the fall.  The combined company will continue under the Panda Ethanol Inc. name.

Haynes and Boone, LLP is an international corporate law firm with offices in Texas, Washington, D.C., Mexico City, Moscow and New York, providing a full spectrum of legal services. With more than 450 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by National Law Journal.  The firm has been recognized by Vault.com as one of the "20 Best Law Firms to Work For," by Corporate Board Member Magazine as one of the “Best Corporate Law Firms in America,” and has received the Minority Corporate Counsel Association’s Thomas L. Sager Award for commitment to diversity.

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