Green Plains greenshoe exercise ups 3.25% convertibles to $120 million

By Susanna Moon

Chicago, Sept. 20 - Green Plains Renewable Energy Inc. said underwriters fully exercised the $20 million over-allotment option on its 3.25% five-year convertible senior notes, bringing the total deal size to $120 million.

Green Plains priced an upsized $100 million of the convertibles at par on Sept. 16 to yield 3.25% with an initial conversion premium of 22.5%, as previously reported.

The Rule 144A deal was upsized from an initially talked $75 million. Pricing came at the midpoint of talk, which was for a 3% to 3.5% coupon and 20% to 25% premium.

The greenshoe was upsized from $15 million.

Jefferies & Co. was the bookrunner.

As noted before, the notes are not convertible before April 1, 2018 unless shares rise to 130% of the conversion price for 20 out of 30 consecutive trading days. There is net share settlement.

The notes are non-callable until Oct. 1, 2016 and then are 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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