Green Plains Renewable to sell $75 million five-year convertibles to yield 3%-3.5%, up 20%-25%

By Rebecca Melvin

New York, Sept. 16 - Green Plains Renewable Energy Inc. plans to sell $75 million of five-year convertible senior notes at par ahead of the market open on Tuesday to yield 3% to 3.5% with an initial conversion premium of 20% to 25%, according to market sources.

The Rule 144A offering has a $15 million greenshoe and was being sold by Jefferies & Co., with co-managers Macquarie and Stephens Inc.

The notes are non-callable for three years and then provisionally callable if shares rise to 140% of the conversion price. There is takeover and dividend protection.

Proceeds will be used for general corporate purposes. The company may use a portion of the proceeds to acquire or invest in additional facilities, assets or technologies. In addition, the company may use a portion of the proceeds to repurchase some of its outstanding 5.75% convertibles through open-market repurchases.

Green Plains is an Omaha-based ethanol company.

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