Green Plains Partners Acquires Abengoa Ethanol Storage Assets
September 26 2016 - 9:01AM
Green Plains Partners LP (NASDAQ:GPP) today announced that it
acquired the ethanol storage assets associated with the Madison,
Ill., Mount Vernon, Ind. and York, Neb. production facilities from
Green Plains Inc. (NASDAQ:GPRE) for $90 million. The partnership
used its revolving credit facility, which was recently expanded, to
fund the purchase.
“We are executing on the growth strategy we laid out in our
initial public offering in June of last year,” said Todd Becker,
president and chief executive officer at Green Plains Partners.
“We’ve added approximately 500 million gallons of throughput volume
to our platform through organic projects and acquisitions. In
addition, we are pursuing projects within the partnership to expand
our downstream logistics activities.”
The storage and throughput agreement between Green Plains
Partners and Green Plains Trade was amended as part of the
transaction, increasing the minimum volume commitment to 296.6
million gallons per quarter. The acquired assets support the
combined production capacity of 236 million gallons per year at the
three plants. Based on expected performance of the acquired assets,
the purchase price represents an 8.5x multiple of anticipated
EBITDA.
The storage assets were simultaneously purchased and sold by
Green Plains as part of the $237 million purchase of three ethanol
plants previously owned by Abengoa Bioenergy.
The terms of the drop down transaction were approved by the
board of directors of the general partner and the board of
directors’ conflicts committee, which consists entirely of
independent directors. The conflicts committee engaged Evercore to
act as its independent financial advisor and Vinson & Elkins to
act as its legal counsel.
About Green Plains PartnersGreen Plains
Partners LP (NASDAQ:GPP) is a fee-based Delaware limited
partnership that provides fuel storage and transportation services
by owning, operating, developing and acquiring ethanol and fuel
storage tanks, terminals, transportation assets and other related
assets and businesses.
Forward-Looking StatementsThis news release
includes forward-looking statements, within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended. Such
statements are based on management’s current expectations, which
are subject to various factors, risks and uncertainties that may
cause actual results, outcomes, timing and performance to differ
materially from those expressed or implied. As a result of these
risks, uncertainties and other factors, actual results could differ
materially from those referred to in the forward-looking
statements. Factors that may cause actual results to differ from
the forward-looking statements contained in this release include,
but are not limited to, risks relating to Green Plains Partners’
ability to integrate the acquired assets into its existing
business. Additional information concerning factors that could
cause actual results to differ materially is contained in the
company's filings with the Securities and Exchange Commission,
including its annual report on Form 10-K for the year ended
December 31, 2015, and subsequent filings. The reader is cautioned
not to rely on these forward-looking statements. All
forward-looking statements are based on information currently
available to Green Plains Partners, and Green Plains Partners
assumes no obligation to update any such forward-looking
statements, except as required by law.
Contact: Jim Stark, Vice President - Investor and Media Relations, Green Plains Inc. (402) 884-8700
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