Green Plains Inc. (GPRE) has announced the completion of its offering of US$170 million aggregate principal amount of 4.125% convertible senior notes due 2022. The notes were offered and sold in a private placement to qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended.
The company's estimated net proceeds from the offering were approximately US$164.25 million after deducting placement agents' discounts and commissions and estimated offering expenses. The company intends to use the net proceeds from the offering for general corporate purposes, including the financing of a portion of the potential acquisition of two ethanol plants affiliated with Abengoa Bioenergy.
The notes will mature on Sept. 1, 2022, and will bear interest at a fixed rate of 4.125% per year, payable on March 1 and Sept. 1 of each year, beginning March 1, 2017. The notes will be general senior, unsecured obligations of the company.
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.