BioFuel Energy Gets Final Confirmation Of Einhorn Deal; Shares Shoot Up
BioFuel Energy (NASDAQ: BIOF) shares jumped as much as nine percent Wednesday morning after confirmation that investor David Einhorn's Green Light Capital will fully participate in an upcoming rights offering.
The offering is key to a $275 million cash and stock deal in which Einhorn will obtain a controlling interest in BioFuel. The deal was proposed in March and inked in June.
BioFuel said it signed a definitive agreement July 10, with Einhorn financing the deal through a rights offering to common shareholders and a private non-registered rights offering to Einhorn's Greenlight and Third Point holding companies.
Biofuel on Tuesday said it obtained so-called backstop agreements for the offering with JMB Capital Partners Master Fund, L.P., Lonestar Partners, LP, North Run Master Fund, LP and Scoggin LLC
A filing with the Securities and Exchange Commission confirmed Einhorn's commitment and revealed that he has increased his stake to 35.4 percent, from 26.24 percent as of March.
BioFuel traded recently at $7.24, up 9.53 percent.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.