Green Plans sells Ord, Nebraska ethanol plant for $64M

In Nebraska, Green Plains Inc. announced that its subsidiary, Green Plains Ord LLC, has entered into an asset purchase agreement with GreenAmerica Biofuels Ord LLC to sell its 65 million gallon ethanol plant located in Ord, Neb. for $64 million, plus working capital.

Simultaneously, Green Plains Partners announced that it has reached an agreement to sell its ethanol storage and transportation assets located at the Green Plains Ord, Neb. ethanol facility to Green Plains Ord LLC for $27 million, along with the transfer of certain railcar leases. As part of the transaction, the minimum volume commitment of Green Plains will be reduced by 14.75 million gallons per quarter.

The storage and throughput services agreement will be amended to adjust the quarterly minimum volume commitment to 217.7 million gallons per quarter or, approximately 91% of the 958 million gallons of annual production capacity of Green Plains Inc. and to extend the maturity date by one year to June 30, 2029. Approximately 180 of the 2,450 railcars managed by Green Plains Partners are anticipated to be conveyed as part of the transaction.

The transaction is anticipated to close within the next 45 days in conjunction with the completion of the Green Plains Ord LLC ethanol asset sale. The purchase agreement is subject to customary closing conditions.

The terms of this transaction were approved by both the board of directors of the general partner and the board of directors’ conflicts committee, which consists entirely of independent directors.