Green Plains plans USD-75m convertible notes issue
Sep 17, 2013 - US ethanol producer Green Plains Renewable Energy Inc (NASDAQ:GPRE) said Monday it planned to launch a USD-75-million (EUR 53m) 2018 convertible senior notes offering seeking funds for general corporate purposes.
The sale is subject to market conditions.
The firm expects to grant the initial purchaser of the notes the right to buy up to USD 15 million in additional notes to cover over-allotments. The notes will convert into cash, common shares or a combination of the two. Interest, conversion rate and the offering price have not been set yet.
Green Plains explained that it could allocate part of the funds to buy or invest in additional ethanol production plants, assets or technologies. Furthermore, it could use some of the net proceeds to buy back a portion of its outstanding 5.75% convertible senior notes, maturing in 2015, through open market repurchases or private deals.
At the end of July, Green Plains posted a net profit of USD 6 million for the second quarter of 2013, after losing USD 7.6 million a year back. Revenues declined to USD 804.7 million from USD 870.4 million.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.