By Wendy Van Sickle
Columbus, Ohio, June 18 – Green Plains Inc. priced $105 million of five-year 4% convertible senior notes with an initial conversion premium of 25% after the market close on Tuesday, according to a press release.
The deal size was increased from an originally planned $100 million.
Price talk was for a coupon of 3.5% to 4% and an initial conversion premium of 25% to 30%, according to a market source.
Jefferies & Co. and BMO Capital Markets are bookrunners for the Rule 144A offering, which carries a greenshoe of $20 million.
The notes are non-callable prior to July 1, 2022 and then subject to a 140% hurdle with a make-whole. They are putable upon a fundamental change and carry dividend protection.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used to refinance $56.8 million of its 3.25% convertible notes due 2019 and repurchase up to $40 million in common stock with the remaining amount to be used for general corporate purposes.
Concurrently with the offering, Green Plains announced a suspension of its quarterly cash dividend.
Green Plains is an Omaha-based diversified commodity-processing business.
| Issuer: | Green Plains Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $105 million
|
| Greenshoe: | $20 million
|
| Maturity: | July 1, 2024
|
| Bookrunners: | Jefferies & Co. and BMO Capital Markets
|
| Coupon: | 4%
|
| Conversion premium: | 25%
|
| Conversion price: | $15.59
|
| Conversion rate: | 64.154
|
| Call options: | Non-callable prior to July 1, 2022 and then subject to a 140% hurdle with a make-whole
|
| Put options: | Upon a fundamental change
|
| Pricing date: | June 18
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| Settlement date: | July 1
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| Distribution: | Rule 144A
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| Talk: | Coupon of 3.5% to 4% and an initial conversion premium of 25% to 30%
|
| Stock symbol: | Nasdaq: GPRE
|
| Stock price: | $12.47 at market close June 18
|
| Market capitalization: | $516.08 million
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