Green Plains to Sell Three Ethanol Plants to Valero
October 10 2018 - 7:02PM
Dow Jones News
By Bowdeya Tweh
Green Plains Inc. (GPRE) has reached a deal to sell three
ethanol plants to a Valero Energy Corp. (VLO) subsidiary for $300
million in cash.
Omaha, Neb.-based commodity processor Green Plains said
Wednesday selling the three plants, located in Lakota, Iowa,
Bluffton, Ind., and Riga, Mich., to Valero Renewable Fuels Co. is
part of its plan to reduce debt. The plants account for roughly 20%
of Green Plains's reported ethanol production capacity.
"This sale is the first step toward our strategic objectives to
prove the value of our assets and to significantly reduce or
eliminate term debt by the end of 2018," Chief Executive Todd
Becker said in prepared remarks.
Green Plains also said Wednesday it has reached a deal with
Green Plains Partners LP (GPP) to buy the storage and
transportation assets and the assignment of railcar leases
associated with the three ethanol plants. Green Plains said it
would exchange about 8.9 million units it owns in the partnership,
worth about $120.9 million, for the storage and transportation
assets and railcar leases.
Both deals are expected to close in the fourth quarter, Green
Plains said.
Shares in Green Plains rose 5% to $16.90 in after-hours
trading.
Write to Bowdeya Tweh at bowdeya.tweh@wsj.com
(END) Dow Jones Newswires
October 10, 2018 18:47 ET (22:47 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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