Effective January 1, 2016, we sold the storage and transportation assets of the Hereford, Texas and Hopewell, Virginia ethanol production facilities to the partnership for $62.3 million. The partnership used its revolving credit facility and cash on hand to fund the purchase of the assets, which included three ethanol storage facilities that support the plants’ combined production capacity of 160 mmgy and 224 leased railcars. In connection with this transaction, Green Plains and the partnership amended the omnibus agreement, operational services agreement, and ethanol storage and throughput agreement.
Effective April 1, 2016, the company increased its ownership of BioProcess Algae to 82.8% and began consolidating the joint venture in its consolidated financial statements. Our ownership in BioProcess Algae is currently at 90.0% as of December 31, 2016. The joint venture is focused on growing algae in commercially viable quantities using feedstocks that are created as part of the ethanol production process.
On June 14, 2016, we announced the formation of a 50/50 joint venture with Jefferson Gulf Coast Energy Partners, a subsidiary of Fortress Transportation and Infrastructure Investors LLC, to construct and operate an intermodal export and import fuels terminal at Jefferson’s existing Beaumont, Texas terminal. The joint venture is expected to invest approximately $55 million in its Phase I development, which will initially focus on storage and throughput capabilities for multiple grades of ethanol. The terminal will have direct access to multiple transportation options, including Aframax vessels, inland and coastwise barges, trucks, and unit trains with direct mainline service from the Union Pacific, BNSF and Kansas City Southern railroads. Commercial development is expected to be complete during the second half of 2017, at which time we will offer our interest in the joint venture to the partnership.
On August 15, 2016, we completed a private offering of 4.125% convertible senior notes for an aggregate principal amount of $170 million that will mature on September 1, 2022. The net proceeds from the offering were used to finance subsequent acquisitions.
On August 25, 2016, the partnership filed a shelf registration statement on Form S-3 with the SEC, which was declared effective September 2, 2016, registering an indeterminate number of debt and equity securities with a total offering price not to exceed $500,000,250. The partnership also registered 13,513,500 common units, consisting of 4,389,642 common units and 9,123,858 common units that may be issued upon conversion of subordinated units, in each case, currently held by Green Plains.
On September 23, 2016, we acquired three ethanol plants located in Madison, Illinois; Mount Vernon, Indiana; and York, Nebraska from subsidiaries of Abengoa S.A. for approximately $234.9 million in cash, plus certain working capital adjustments. The plants have combined production capacity of approximately 230 mmgy. Concurrently, the partnership acquired the ethanol storage assets related to these production facilities from us for $90 million. The partnership used its revolving credit facility to fund the purchase of the assets. In connection with this transaction, Green Plains and the partnership amended the omnibus agreement, operational services agreement, and ethanol storage and throughput agreement.
On October 3, 2016, we acquired Fleischmann’s Vinegar, one of the world’s largest producers of food-grade industrial vinegar, for $258.3 million in cash, including certain post-closing adjustments. A portion of the purchase price was used to repay existing debt. The transaction was partially financed using $135 million of debt under a new credit agreement, consisting of a $130 million term loan and $5 million borrowed under a $15 million revolving credit facility. The balance of the transaction was paid from cash on hand.