Breathing room: Gevo refinances current year debt through 2020
In Colorado, WB Gevo, Ltd. the holder of the Company’s issued and outstanding Senior Secured Convertible Notes, due June 23, 2017 exchanged all $16.5 million of the existing 2017 Notes for $16.5 million of the Company’s newly created 12.0% Convertible Senior Secured Notes due March 15, 2020.
The 2020 Notes are convertible, at the option of the holders, into shares of the Company’s common stock.
“This Exchange is a significant milestone for Gevo. With a new maturity date for our senior debt in March 2020, we can focus on executing our key strategic initiatives, without the distraction of near term liquidity concerns. We ended last quarter with over $20 million of cash on our balance sheet, and we expect that this will be sufficient to fund Gevo into 2018 without any additional financings,” said Dr. Patrick Gruber, Gevo’s Chief Executive Officer.
“Our improved balance sheet should play an important role in our negotiations of supply agreements for our core jet fuel, renewable gasoline and isobutanol products. Gevo’s improved financial condition is important to customers, as it provides better certainty that Gevo will produce and deliver its products to them in the future,” Mr. Gruber continued.
Category: Fuels
