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Biofuel Energy to acquire JBGL from Greenlight Capital for $275M

Biofuel Energy (BIOF) has entered into a definitive agreement with certain affiliates of Greenlight Capital (GLRE) and James R. Brickman to acquire the equity interests of JBGL Builder Finance and certain subsidiaries of JBGL Capital from Greenlight and Brickman for $275M, payable in cash and company common stock. 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, currently owned and controlled by Greenlight and Brickman. The cash portion of the purchase price will be funded from the proceeds of a $70M rights offering to be conducted by the company and approximately $150M in debt financing provided to the company by Greenlight. Jim Brickman, co-founder of JBGL, will become CEO and a director of the company upon closing of the transaction. The acquisition of JBGL by the company is expected to be consummated in October 2014.