Green Plains Partners to Sell Ethanol Storage Assets to Green Plains Ord LLC
Green Plains Partners LP (NASDAQ:GPP) has agreed to sell its ethanol storage and transportation assets at the Green Plains Ord facility for $27 million.
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Rhea-AI Summary
Green Plains Partners LP (NASDAQ:GPP) has agreed to sell its ethanol storage and transportation assets at the Green Plains Ord facility for $27 million. This transaction includes a reduction of 14.75 million gallons per quarter in the minimum volume commitment. The assets will enable Green Plains to reduce its debt while reallocating proceeds toward its protein technology initiatives, aiming for enhanced throughput rates. The agreement is set to close within 45 days and includes adjustments to the storage services agreement.
Positive
- Sale of ethanol storage assets for $27 million enhances liquidity.
- Reduction in minimum volume commitment alleviates pressure on operations.
- Proceeds are allocated towards higher throughput initiatives in protein technology.
Negative
- Reduction of minimum volume commitment may indicate lower future sales expectations.
Details
News Market Reaction – GPP
The recorded move for GPP in the trading session of this news was -0.52%.
Data tracked by StockTitan Argus. Session date unavailable.
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OMAHA, Neb., Jan. 27, 2021 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today 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
“The sale of the assets affiliated with the Ord location allows Green Plains Partners to continue to deleverage its balance sheet while enabling the parent, Green Plains Inc., to reallocate the proceeds from the sale toward its protein technology initiatives which should result in higher throughput rates,” said Todd Becker, president and chief executive officer of Green Plains Partners.
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
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.
About Green Plains Partners LP
Green Plains Partners LP (NASDAQ:GPP) is a fee-based Delaware limited partnership formed by Green Plains Inc. to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage terminals, transportation assets and other related assets and businesses. For more information about Green Plains Partners, visit www.greenplainspartners.com.
Forward-Looking Statements
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements reflect management’s current views, which are subject to risks and uncertainties including, but not limited to, anticipated financial and operating results, plans and objectives that are not historical in nature. These statements may be identified by words such as “believe,” “expect,” “may,” “should,” “will” and similar expressions. Factors that could cause actual results to differ materially from those expressed or implied include risks related to Green Plains’ ability to successfully complete the sale of the Ord, Nebraska ethanol plant to GreenAmerica Biofuels Ord LLC and other risks discussed in Green Plains’ reports filed with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. Green Plains assumes no obligation to update any such forward-looking statements, except as required by law.
Green Plains Inc. Contacts
Investors: Phil Boggs | Senior Vice President, Investor Relations | 402.884.8700 | phil.boggs@gpreinc.com
Media: Leighton Eusebio | Manager, Public Relations | 402.952.4971 | leighton.eusebio@gpreinc.com
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