DOW JONES NEWSWIRES
Rex Stores Corp. (NYSE:RSC) (RSC) made an equity investment of $11.5 million in Levelland/Hockley County Ethanol LLC, as Levelland/Hockley met all conditions required, including securing financing for Rex Stores (NYSE:RSC) to proceed with its investment.
The Dayton, Ohio, appliance retailer said the recent investment and its previously announced $5 million convertible secured promissory note commitment enable it to secure a majority ownership interest in Levelland/Hockley.
On July 31, Rex Stores (NYSE:RSC) said it entered into a contingent agreement to invest an additional $11.5 million to $18 million in Levelland/Hockley, which plans to build an ethanol production facility in Levelland, Texas.
Merrill Lynch & Co. (NYSE:MER) (MER) will provide the senior debt financing to Levelland/ Hockley.
Rex Stores (NYSE:RSC) said Levelland/Hockley signed an agreement with ICM Inc. to begin construction on the plant by Nov. 15.
-Adam Kuczynski; 201-938-5400; AskNewswires@dowjones.com
(END) Dow Jones Newswires 09-29-06 0812 Copyright (c) 2006 Dow Jones & Company, Inc.
