Aker BioMarine Manufacturing Closes $28 Million in NMTC Financing for New
Houston Production Facility
Tax Credit Investment by National New Markets Fund, Texas Mezzanine
Fund and Chase New Markets Corporation Will Expand Krill Oil
Production and Create 50 New Jobs
HOUSTON, TX -- (Marketwired) -- 01/30/14 -- Aker BioMarine
Manufacturing (AKBM Manufacturing) has secured $28 million in New
Markets Tax Credit (NMTC) allocation from National New Markets Fund,
LLC, Texas Mezzanine Fund and Chase New Markets Corporation to
transform a vacant former Dreyer's Grand Ice Cream plant into a fully
operational krill manufacturing facility.
The redeveloped facility will extract omega-3 fatty acids from krill
to produce supplements designed to promote physical and mental
health. Krill, a small ocean crustacean that congregates in swarms,
is one of the most abundant biomasses on the planet. Krill supplied
to the new AKBM Manufacturing plant will be harvested with a
sustainable method in order to prevent unintentional fish capture and
minimize ecological impacts.
The existing 144,800 square foot facility is situated on more than
nine acres in a highly-distressed census tract of Houston with a
14.2% unemployment rate and 19.2% poverty rate. Dreyer's Grand Ice
Cream previously owned the plant and ceased operations in 2010,
affecting 168 manufacturing and distribution employees.
AKBM Manufacturing recently executed an agreement to purchase the
facility and restore 50 manufacturing jobs within its first three
years of operation. The facility has the ability to double its
capacity and create an additional 50 jobs through future growth.
The $28 million allocation of federal New Markets Tax Credits (NMTCs)
includes $12 million from National New Markets Fund, $14 million from
Texas Mezzanine Fund and $2 million from Chase, which also served as
the tax credit investor.
"The New Markets Tax Credit program was critical in making this
project a reality," said Gaetan Sourceau, CFO of AKBM Manufacturing.
"Our expansion to Houston might not have happened without NMTC
financing, and the resulting benefits -- including the jobs that will
be created -- might have been lost."
President and CEO of Texas Mezzanine Fund Victor Elmore added, "The
federal New Markets Tax Credit program cr
eates economic opportunity
and combats poverty. By helping Aker BioMarine Manufacturing finance
its expansion, these credits will have a profound and positive impact
on our state."
The NMTC program was established by Congress in 2000 to stimulate
investment and economic growth in designated low-income communities.
It raises investor capital and leverages public and private funding
to provide borrowers, like AKBM Manufacturing, with financing in the
form of favorable rates and flexible below-market terms. NMTCs fill
financing gaps when other public and private funding sources are
insufficient or unavailable. They help borrowers achieve their
mission -- in this case, providing new employment opportunities and
economic development to a low-income neighborhood in Houston.
"This project has the potential to transform a severely distressed
community," said National New Markets Fund President Deborah La
Franchi. "Our NMTC investment will help bring back high-wage,
high-quality manufacturing jobs to Houston that were lost due to the
closure of the Dreyer's Grand Ice Cream plant."
National New Markets Fund CEO Belden Hull Daniels added, "We are
proud to play a role in developing the Aker BioMarine Manufacturing
project not only for the jobs it will create, but also for the
potential health benefits and sustainable harvesting methods of its
The project is located within a Texas Enterprise Zone, which means it
is part of a program focused on creating jobs and reducing poverty in
economically distressed areas of the state. It is estimated that the
project will generate more than $65 million annually through direct,
indirect and induced economic output.
"We seek out highly innovative enterprises that are located in
low-income communities and that can bring new capital and investment
to the area," said Wanda Clark, Vice President of Community
Development Banking at Chase. "The Aker BioMarine Manufacturing
project aligns with the community's need to strengthen commercial and
industrial districts, which are critical to the local economy and its
About National New Markets Fund
Deborah La Franchi of Strategic
Development Solutions (SDS) and Belden Hull Daniels of Economic
Innovation International, Inc. co-founded National New Markets Fund
to invest in development projects that serve low income communities
across the U.S. The Fund has received $312 million in National New
Market Tax Credit (NMTC) allocation and invested into 25 projects to
date. As a mission-driven investment fund, it seeks investments that
create substantial economic and community development impacts. Visit
more information on the Fund's projects.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global
financial services firm with assets of $2.5 trillion and operations
worldwide. The Firm is a leader in investment banking, financial
services for consumers and small businesses, commercial banking,
financial transaction processing, asset management and private
equity. A component of the Dow Jones Industrial Average, JPMorgan
Chase & Co. serves millions of consumers in the United States and
many of the world's most prominent corporate, institutional and
government clients under its J.P. Morgan and Chase brands. More
information about JPMorgan Chase & Co. is available at
About Texas Mezzanine Fund
The Texas Mezzanine Fund, Inc. (TMF) is a
for-profit community development corporation certified by the U.S.
Department of the Treasury as a Community Development Financial
Institution and Community Development Entity. TMF's main goal is to
promote, stimulate, develop and advance the business, prosperity,
employment and economic welfare in distressed and under-served
communities throughout the State of Texas by providing financing for
businesses in these areas. TMF was capitalized by a consortium of
financial institutions and began lending in May 1999. More
information can be found at www.tmfund.com
About Aker BioMarine Manufacturing (AKBM Manufacturing)
the global leader in specialty plant-based natural ingredients, and
Aker BioMarine -- the Norwegian-based world leader in krill
harvesting for the development, production and commercialization of
Omega-3 rich krill oil-based products, announced in February 2013 the
creation of a joint venture. AKBM Manufacturing is the product of a
collaborative industrial approach combining Aker BioMarine's know-how
in krill sourcing based on a sustainable method that respects the
Antarctic Ocean ecosystem with Naturex's extraction expertise based
on a highly advanced scientific and technological method. The
production site will be based in the United States in Houston, Texas
and the plant will come on line in June 2014.
ExcelPR Group (for NNMF)
310.914.5333 ext. 213
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