Green Plains Cattle obtains $100 million revolving credit facility

By Toni Weeks

San Luis Obispo, Calif., Dec. 5 – Green Plains Inc. subsidiary Green Plains Cattle Co., LLC entered into a $100 million revolving credit facility agreement on Dec. 3 via Bank of the West and ING Capital LLC as joint administrative agents and arrangers, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility, which matures October 2017, includes a $50 million accordion feature.

Borrowings will initially bear interest at Libor plus 300 basis points. After that, the margin may range from 200 bps to 300 bps depending upon availability. The non-use fee is initially 25 bps and ranges from 20 bps to 25 bps, also based on availability.

The facility is secured by substantially all of Green Plains Cattle’s assets. The terms require the company to maintain a minimum working capital of $15 million, a minimum tangible net worth of $20 million and a maximum total debt to tangible net worth of 3.50:1.00.

The company is required to make monthly interest payments on loan advances payable in arrears on the last business day of each month, with the principal balance and remaining interest due at maturity.

Proceeds will primarily be used to finance working capital for the cattle feedlot operations.

Bank of the West is the swingline lender, and ING Capital is letter-of-credit issuer.

Green Plains is an Omaha-based diversified commodity-processing business with operations related to ethanol production, corn oil production, grain handling and storage, and commodity marketing and distribution services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.