Green Plains Inc 8-K, filed Jul 30, 2020
Green Plains Inc. (GPRE)
About this 8-K
Green Plains Inc filed this 8-K on July 30, 2020, reporting on events of July 29, 2020.
Items reported
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
|
|
Date of Report (Date of earliest event reported) |
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation)
|
|
|
|
(Commission file number) | (IRS employer identification no.) |
|
|
(Address of principal executive offices) | (Zip code) |
(
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
|
|
|
Title of each class | Trading Symbol | Name of each exchange on which registered |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01. Other Events.
On July 29, 2020, Green Plains Inc. issued a press release announcing it received credit approval of a definitive term sheet for a $75.0 million loan facility. Upon closing, the loan facility is expected to have a 15-year term and an interest rate with a 5% floor that can be either a fixed rate of 15-year indicative Treasury yield plus 4.00%, or a floating rate of one-month LIBOR plus 4.50%, and will require principal payments of $1.5 million per year beginning 24 months from the closing date. The completion of the potential new loan facility is subject to, among other things, market conditions and the negotiation and execution of definitive documentation, and there can be no assurance the potential new loan facility will be completed on the terms contemplated by the term sheet, or at all. Closing of the loan facility is expected to occur during the third quarter. A copy of the press release is attached hereto as Exhibits 99.1 and 99.2 and are incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are filed as part of this report.
|
|
Exhibit No. | Description of Exhibit |
|
|
99.1 | |
|
|
99.2 | |
|
|
104 | Cover Page formatted in Inline Extensible Business Reporting Language (iXBRL). |
|
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
Date: July 30, 2020 |
Green Plains Inc.
By: /s/ Michelle Mapes Michelle Mapes |
Exhibit 99.1
|
|
|
|
|
|
FOR IMMEDIATE RELEASE
Green Plains Receives Approval for $75 Million in Financing
Wood River to Install Fluid Quip Technologies’ High Protein System
OMAHA, Neb., July 29, 2020 (GLOBE NEWSWIRE) – Green Plains Inc. (NASDAQ:GPRE) today announced it has received final credit approval for a $75 million, 15 year term loan facility that will support the execution of its protein strategy. The new loan, which is subject to final documentation, is expected to close by the end of the third quarter at which time additional details of the facility will be provided. The company today also announced it has chosen Green Plains Wood River LLC as the second location for the installation of high protein production using Fluid Quip Technologies’ patented Maximized Stillage Co-Products (MSCTM) system. Based on current schedules, high protein ingredient production at Wood River is expected to begin during the second quarter of 2021.
“This financing represents the next step in our transformation to Green Plains 2.0,” said Todd Becker, president and chief executive officer. “Securing long term strategic project-based debt enables us to accelerate protein expansion at Wood River with a third location to be announced, and more importantly validates the strategic direction of the company.”
With the benefits provided by Project 24, Wood River runs at industry leading operating efficiency, now capable of producing 130 million gallons per year with operating expenses as low as $0.22 per gallon, and is a perfect platform for the addition of protein production. Because of the facility’s existing drying capabilities, the investment is expected to be about $50 million with an initial uplift of 15 to 20 cents per gallon to the overall margin structure. With the buildout of protein production, the recent addition of high-quality industrial alcohol and the announced upgrade to USP grade alcohol, Wood River is on a path to be one of the leading biorefineries in the world.
“We are excited to add Fluid Quip’s high protein feed ingredient technology to a second location in our platform,” added Becker. “An additional 80,000 tons of greater than 50% protein production capacity adds redundancy to our supply chain, allowing us to offer customers a premium product, at scale, with the confidence of full reliability. Given the success we’ve experienced at Shenandoah, we expect Wood River to deliver optimal results and believe the product will be fully contracted prior to startup.”
Upon close, the loan is expected to have an interest rate with a 5.00% floor that can be either a fixed rate using the 15 year indicative Treasury yield plus 4.00%, or a floating rate of one-month Libor plus 4.50%. The loan will be secured by the assets of Green Plains Shenandoah LLC and Green Plains Wood River LLC.
About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a diversified commodity-processing business with operations that include corn processing, grain handling and storage and commodity marketing and logistics services. The company is one of the leading corn processors in the world and, through its adjacent businesses, is focused on the production of high-protein feed ingredients. Green Plains owns a 50% interest in Green Plains Cattle Company LLC and owns a 49.0% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information about Green Plains, visit www.gpreinc.com.
Green Plains Inc. Contacts
Investors: Phil Boggs | Senior Vice President, Investor Relations & Treasurer | 402.884.8700 | phil.boggs@gpreinc.com
Media: Leighton Eusebio | Manager, Public Relations | 402.952.4971 | leighton.eusebio@gpreinc.com
###
Exhibit 99.2
|
|
|
|
|
|
FOR IMMEDIATE RELEASE
UPDATE - Green Plains Receives Approval for $75 Million in Financing
Wood River to Install Fluid Quip Technologies’ High Protein System
OMAHA, Neb., July 29, 2020 (GLOBE NEWSWIRE) – Green Plains Inc. (NASDAQ:GPRE) today announced it has received final credit approval for a $75 million, 15 year term loan facility that will support the execution of its protein strategy. The new loan, which is subject to final documentation, is expected to close by the end of the third quarter at which time additional details of the facility will be provided. The company today also announced it has chosen Green Plains Wood River LLC as the second location for the installation of high protein production using Fluid Quip Technologies’ patented Maximized Stillage Co-Products (MSCTM) system. Based on current schedules, high protein ingredient production at Wood River is expected to begin during the second quarter of 2021.
“This financing represents the next step in our transformation to Green Plains 2.0,” said Todd Becker, president and chief executive officer. “Securing long term strategic project-based debt enables us to accelerate protein expansion at Wood River with a third location to be announced, and more importantly validates the strategic direction of the company.”
With the benefits provided by Project 24, Wood River runs at industry leading operating efficiency, now capable of producing 130 million gallons per year with operating expenses as low as $0.22 per gallon, and is a perfect platform for the addition of protein production. Because of the facility’s existing drying capabilities, the investment is expected to be about $50 million with an initial uplift of 15 to 20 cents per gallon to the overall margin structure. With the buildout of protein production, the recent addition of high-quality industrial alcohol and the announced upgrade to USP grade alcohol, Wood River is on a path to be one of the leading biorefineries in the world.
“We are excited to add Fluid Quip’s high protein feed ingredient technology to a second location in our platform,” added Becker. “An additional 80,000 tons of greater than 50% protein production capacity adds redundancy to our supply chain, allowing us to offer customers a premium product, at scale, with the confidence of full reliability. Given the success we’ve experienced at Shenandoah, we expect Wood River to deliver optimal results and believe the product will be fully contracted prior to startup.”
Upon close, the loan is expected to have an interest rate with a 5.00% floor that can be either a fixed rate using the 15 year indicative Treasury yield plus 4.00%, or a floating rate of one-month Libor plus 4.50% and will require principal payments of $1.5 million per year beginning 24 months from the closing date. The loan will be secured by the assets of Green Plains Shenandoah LLC and Green Plains Wood River LLC.
About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a diversified commodity-processing business with operations that include corn processing, grain handling and storage and commodity marketing and logistics services. The company is one of the leading corn processors in the world and, through its adjacent businesses, is focused on the production of high-protein feed ingredients. Green Plains owns a 50% interest in Green Plains Cattle Company LLC and owns a 49.0% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information about Green Plains, visit www.gpreinc.com.
Green Plains Inc. Contacts
Investors: Phil Boggs | Senior Vice President, Investor Relations & Treasurer | 402.884.8700 | phil.boggs@gpreinc.com
Media: Leighton Eusebio | Manager, Public Relations | 402.952.4971 | leighton.eusebio@gpreinc.com
###