Green Plains prices $170M in new convertible

August 14, 2016 |

In Nebraska, Green Plains priced its offering of $170 million aggregate principal amount of convertible senior notes due 2022, which was upsized from the previously announced $150 million aggregate principal amount of notes. The notes will mature on September 1, 2022 and will bear interest at a fixed rate of 4.125% per year.

On and after September 1, 2020, and prior to the maturity date, the company may redeem all, but not less than all, of the notes for cash if the last reported sale price of the company’s common stock equals or exceeds 140% of the applicable conversion price for a specified time period.

The company has been said to be raising cash relating to the acquisition of Abengoa Bioenergy ethanol assets.

The notes will be convertible, at the option of the holders, into consideration consisting of, at the company’s election, cash, shares of the company’s common stock, or a combination of cash and stock (and cash in lieu of fractional shares). However, before March 1, 2022, the notes will not be convertible unless certain conditions are satisfied. The initial conversion rate will be 35.7143 shares of the company’s common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $28.00 per share of the company’s common stock).

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Category: Fuels

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