David Einhorn Acquires BioFuel Energy Shares (BIOF) ~ market folly

Wednesday, February 9, 2011

David Einhorn Acquires BioFuel Energy Shares (BIOF)

Greenlight Capital hedge fund manager David Einhorn just filed an amended 13D and Form 4 with the SEC regarding his position in BioFuel Energy (BIOF). Per the amended 13D filing, Einhorn now shows a 40.8% ownership stake in BIOF with 42,818,004 shares. We've also recently posted other Greenlight portfolio activity for those interested.

David Einhorn's various investment entities (Greenlight Capital funds) have purchased an aggregate of 19,626,775 shares of common stock and 11,307,729 shares of Class B common stock. These shares were purchased via rights offering and the net investment made in the private placement was $17,323,322.24.

It appears as though BioFuel used the proceeds from the rights offering and private placement to repay a subordinated loan and bridge loan. Readers will recall that both David Einhorn and Dan Loeb's Third Point provided BIOF the bridge loan.

Here is a full breakdown of how the BIOF shares are allocated among various Einhorn entities:

(click to enlarge)

Per Google Finance, BioFuel Energy "produces and sells ethanol and its co-products (primarily distillers grain), through its two ethanol production facilities located in Wood River, Nebraska and Fairmont, Minnesota."

For more from this hedge fund manager, be sure to check out David Einhorn's recommended reading list.

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