Senior Secured Lender Agrees to Extend Maturity of Gevo’s 2017 Notes from March 15, 2017 to June 23, 2017
14 February 2017 - 8:00AM
Gevo, Inc. (NASDAQ:GEVO), announced today that WB Gevo, Ltd.
(“Whitebox”), the holder of the Company’s issued and outstanding
10% Convertible Senior Notes, due 2017 (the “2017 Notes”), and the
Company have agreed to extend the maturity date of the 2017 Notes
from March 15, 2017 to June 23, 2017 (the “2017 Notes Extension
Transaction”).
Pursuant to the terms of a supplemental indenture, the terms of
the 2017 Notes Extension Transaction include, among other things,
the following: (i) an increase in the coupon on the 2017 Notes by
two percent (2%) to twelve percent (12%); and (ii) the requirement
that the Company pay down $8 million of principal on the 2017 Notes
as follows: $2 million on each of March 13, 2017, April 13, 2017,
May 12, 2017 and June 13, 2017, with an option for the Company to
prepay all $8 million at any time in the Company’s sole
discretion.
As of December 31, 2016, Gevo had cash and cash equivalents of
approximately $27.9 million[1].
In addition, as part of the 2017 Notes Extension Transaction,
the Company has agreed to pay Whitebox fifteen percent (15%) of the
net proceeds from its next underwritten public offering, completed
prior to June 23, 2017, and to be used to reduce the
then-outstanding principal of the 2017 Notes, which would be in
addition to the $8 million pay-down of the 2017 Notes described
above. As of December 31, 2016, the aggregate amount of the
outstanding principal relating to the 2017 Notes was $26.1
million.
“This extension gives Gevo and Whitebox additional time to amend
and extend the terms and maturity of the remaining portion of
Gevo’s senior debt. Whitebox has always been very supportive of
Gevo, and we are confident that we will come up with a long-term
solution that will enable us to execute on our business plan and
ultimately get the company to profitability,” said Dr. Patrick
Gruber, Gevo’s Chief Executive Officer.
About Gevo
Gevo is a leading renewable technology, chemical products, and
next generation biofuels company. Gevo has developed proprietary
technology that uses a combination of synthetic biology, metabolic
engineering, chemistry and chemical engineering to focus primarily
on the production of isobutanol, as well as related products from
renewable feedstocks. Gevo’s strategy is to commercialize bio-based
alternatives to petroleum-based products to allow for the
optimization of fermentation facilities’ assets, with the ultimate
goal of maximizing cash flows from the operation of those assets.
Gevo produces isobutanol, ethanol and high-value animal feed at its
fermentation plant in Luverne, Minnesota. Gevo has also developed
technology to produce hydrocarbon products from renewable alcohols.
Gevo currently operates a biorefinery in Silsbee, Texas, in
collaboration with South Hampton Resources Inc., to produce
renewable jet fuel, octane, and ingredients for plastics like
polyester. Gevo has a marquee list of partners including The
Coca-Cola Company, Toray Industries Inc. and Total SA, among
others. Gevo is committed to a sustainable bio-based economy that
meets society’s needs for plentiful food and clean air and
water.
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements, which include statements relating to Gevo’s ability to
successfully complete an underwritten public offering, are made on
the basis of the current beliefs, expectations and assumptions of
the management of Gevo and are subject to significant risks and
uncertainty. Investors are cautioned not to place undue reliance on
any such forward-looking statements. All such forward-looking
statements speak only as of the date they are made, and Gevo
undertakes no obligation to update or revise these statements,
whether as a result of new information, future events or otherwise.
Although Gevo believes that the expectations reflected in these
forward-looking statements are reasonable, these statements involve
many risks and uncertainties that may cause actual results to
differ materially from what may be expressed or implied in these
forward-looking statements. For a further discussion of risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to the business of Gevo in general, see the risk
disclosures in the Annual Report on Form 10-K of Gevo for the year
ended December 31, 2015, and in subsequent reports on Forms 10-Q
and 8-K and other filings made with the U.S. Securities and
Exchange Commission by Gevo.
[1] This amount is unaudited and preliminary, and does not
present all information necessary for an understanding of our
financial condition as of December 31, 2016. The review of our
financial statements for the year ended December 31, 2016 is
ongoing and could result in changes to this amount.
Media Contact
David Rodewald
The David James Agency, LLC
+1 805-494-9508
gevo@davidjamesagency.com
Investor Contact
Shawn M. Severson
EnergyTech Investor, LLC
+1 415-233-7094
gevo@energytechinvestor.com
@ShawnEnergyTech
www.energytechinvestor.com
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