Green Plains Cattle ups revolving loan commitments, extends to 2020

By Susanna Moon

Chicago, May 1 – Green Plains Cattle Co. LLC boosted its lender commitments to $200 million from $100 million until July 31 and then to $300 million after that.

The facility was extended to April 30, 2020 from Oct. 31, 2017.

Green Plains amended its senior secured asset-based revolving credit facility on April 28 led by Bank of the West and ING Capital LLC, according to an 8-K filing with the Securities and Exchange Commission.

The loan was amended to fund additional working capital requirements for the pending acquisition of two cattle feedlots located in Leoti, Kan., and Yuma, Colo.

The revolving credit facility is used to finance the working capital for cattle feedlot operations up to the maximum commitment, based on collateral equal to the sum of percentages of receivables, inventories and other current assets, less miscellaneous adjustments, the filing noted.

Interest on the revolving loans will be Libor plus 200 bps to 300 bps, based on the preceding three months’ excess borrowing availability.

The unused fee is 20 bps to 30 bps.

The credit facility also includes an accordion that allows the maximum commitment to be increased by up to $100 million with agent approval, depending on the preceding three months’ excess borrowing availability.

Lenders receive a first priority lien on some cash, inventory, accounts receivable, property and equipment and other assets as security on the credit facility.

The covenants require maintaining working capital of 15% of the commitment amount, tangible net worth of 20% of the commitment amount and a total debt to tangible net worth ratio of 3.5x or less.

Capital expenditures are capped at $10 million per year under the credit facility, plus $10 million per year if funded by a contribution from the parent, plus unused amounts from the previous year.

Green Plains operates cattle feedlots and is based in Kismet, Kan.

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