Gevo greenshoe exercised, lifts 7.5% convertibles by $5 million

By Tali David

Minneapolis, July 25 - Gevo Inc. said the over-allotment option on its offering of 7.5% convertible senior unsecured subordinated debentures was exercised in full, increasing the offering by $5 million, according to an 8-K filed with the Securities and Exchange Commission.

As previously reported, the company priced $40 million of the convertibles on June 28.

Net proceeds from the offerings are earmarked to repay a portion of the company's outstanding long-term debt, to fund the cash consideration payable to complete a retrofit of its Luverne, Minn., plant and to fund partially its Redfield Energy retrofit.

Remaining proceeds will be for working capital and for other general corporate purposes.

UBS Securities LLC and Piper Jaffray & Co. are acting as joint bookrunners for the offerings, with Robert W. Baird as co-manager for the common stock offering.

Gevo is an Englewood, Colo., renewable chemicals and advanced biofuels company.

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