Green Plains Partners and Green Plains successfully refinanced the partnership’s debt facility, which was arranged by Bank of America. The loan was approved by all of Green Plains’ existing lenders and became effective on June 4.
“Green Plains Partners continues to maintain ample liquidity and strong cash flow supported by long-term minimum volume commitments,” Todd Becker, president and CEO of Green Plains Partners, said. “The closing of this transaction and repayment of debt over the next 18 months will be beneficial to all stakeholders, allowing us to allocate capital toward potential increases in future distributions.”
The new loan will mature on Dec. 31, 2021, and includes a $130 million term loan and a $5 million revolving credit facility. Interest on the loan is LIBOR based with a 1% floor, plus 450 to 525 basis points depending on certain conditions. The term loan requires a principal payment of $7.5 million on July 15, 2020 and $2.5 million in monthly principal amortization thereafter, with a step up to approximately $3.2 million beginning May 2021. The loan is secured by substantially all of the assets of the partnership.
Green Plains Partners is a fee-based Delaware limited partnership formed by Green Plains to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses.
Green Plains is a diversified commodity-processing business with operations that include corn processing, grain handling and storage and commodity marketing and logistics services.