- Company fully retires high-interest, senior convertible debt
earlier than planned.
- Company sells Creston, Iowa, processing business for gross
proceeds of $72 million1 to White River Soy Processing,
strengthening its balance sheet.
- Management reiterates focus on seed innovations backed by
competitively advantaged technology.
Benson Hill, Inc. (NYSE: BHIL, the “Company” or “Benson
Hill”), an ag tech company unlocking the natural genetic diversity
of plants, announced today that it has successfully retired its
senior debt facility and divested its Creston, Iowa, soy processing
business to White River Soy Processing (WRSP) for gross proceeds of
$72 million.1 These actions align with Benson Hill’s commitment to
disciplined liquidity management and asset efficiency as the
Company transitions to an asset-light business model backed by
world-class soybean germplasm and competitively advantaged
technology.
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the full release here:
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Benson Hill has successfully retired its
senior debt facility and divested its Creston, Iowa, soy processing
business to White River Soy Processing (WRSP) for gross proceeds of
$72 million. These actions align with Benson Hill’s commitment to
disciplined liquidity management and asset efficiency as the
Company transitions to an asset-light business model backed by
world-class soybean germplasm and competitively advantaged
technology. (Photo: Business Wire)
The Creston transaction closed Feb. 13, 2024, and is a pivotal
step for Benson Hill as it sharpens its focus on core growth areas.
The Company also retired its senior convertible debt earlier than
planned. As previously communicated, the Company intended to retire
the debt facility by March 1, 2024, having paid down about half of
its senior loan in November 2023.
“This divestiture supports our strategic plan to reshape our
organization and transition to an asset-light business model with
an expanded focus on animal feed markets,” said Deanie Elsner,
Chief Executive Officer of Benson Hill. “More importantly, exiting
our ownership and operation of soy processing assets strengthens
our balance sheet with lower capital and operating expenditures,
while allowing us to thoughtfully allocate resources to leverage
our core competencies as a technology-enabled, seed innovation
company.”
“We know WRSP leadership well and have confidence that they will
operate the facility with the highest industry standards and a
customer-centric approach,” Elsner added. “We sincerely appreciate
the hard work of the Creston employees as they increased throughput
at the facility to unprecedented levels. We thank them for their
contributions to Benson Hill.”
As a result of the purchase, Benson Hill has transferred to WRSP
ownership and all operations related to the Creston soy processing
facility, including the established customer base. Approximately 55
team members at Creston will continue employment under the new
ownership. The Creston plant is equipped to produce soy meal and
oil, as well as food-grade soy white flake, flour, and grits.
A specialty oilseed processor based in Omaha, Neb., WRSP also
separately purchased Benson Hill’s Seymour, Ind., crush assets in
October 2023.
Management plans to discuss these developments in greater detail
during Benson Hill’s fourth quarter earnings call on March 14, as
previously announced. For more information, visit the Company’s
investor relations page.
About White River Soy Processing
White River Soy Processing, LLC develops and operates oilseed
processing facilities in the U.S. With a commitment to excellence
in production and safety for our employees, our team leverages
decades of experience in soybean processing and is driven to
produce the highest quality vegetable protein meal and oil for
better nutritional outcomes. We are passionate about building
lasting partnerships with farmers, contributing to our communities,
and delivering superior soybean products to our customers. For more
information, visit www.whiteriversoy.com.
About Benson Hill
Benson Hill moves food forward with the CropOS® platform, a
cutting-edge food innovation engine that combines data
science and machine learning with biology and genetics. Benson Hill
empowers innovators to unlock nature’s genetic diversity from plant
to plate, with the purpose of creating nutritious, great-tasting
food and ingredient options that are both widely accessible and
sustainable. More information can be found at bensonhill.com or on
X, formerly known as Twitter, at @bensonhillinc.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may be considered
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements generally relate to future events or the Company’s
future financial or operating performance and may be identified by
words such as “may,” “should,” “expect,” “intend,” “will,”
“estimate,” “anticipate,” “believe,” “predict,” or similar words.
These forward-looking statements are based upon assumptions made by
the Company as of the date hereof and are subject to risks,
uncertainties, and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. These forward-looking statements
include, among other things, statements regarding the anticipated
benefits of the Company’s sale of its Creston soy processing
business; statements regarding the anticipated amount, and the
Company’s use of, proceeds from such sale; statements regarding the
anticipated benefits of the retirement of the Company’s senior
convertible debt, including the terms of such retirement;
statements regarding the Company’s improved liquidity, cost and
operational improvements; statements regarding the Company’s
working capital and capital allocation; statements regarding the
Company’s successful implementation of the Company’s liquidity
improvement plan, including the paydown of debt; statements
regarding employees transferring to White River; and statements
regarding the Company’s growth strategy and its intent to leverage
its core competencies as a technology-enabled seed innovation
company. Factors that may cause actual results to differ materially
from current expectations and guidance include, but are not limited
to, risks associated with realizing the benefits of the sale of the
Company’s Creston soy processing business, including with respect
to the ultimate net proceeds the Company will receive from such
sale as a result of deferred payments and holdbacks and certain
other adjustments to the purchase price; risks associated with the
Company’s liquidity and other risks relating to the Company’s
ability to continue as a going concern; risks associated with the
Company’s ability to grow and achieve growth profitably, including
continued access to the capital resources necessary for growth;
risks associated with managing capital resources; risks relating to
maintaining key employee, customer, partner and supplier
relationships; risks associated with maintaining relationships with
customers and suppliers and developing and maintaining partnering
and licensing relationships; risks associated with changing
industry conditions and consumer preferences; risks associated with
the Company’s ability to generally execute on its business
strategy; and the other risks and uncertainties set forth in the
sections entitled “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in our filings with the Securities and
Exchange Commission, which are available on its website at
www.sec.gov. Nothing in this press
release should be regarded as a representation that the
forward-looking statements set forth herein will be achieved or
that any of the contemplated results of such forward-looking
statements will be achieved, including without limitation, any
expectations about our operational and financial performance or
achievements. There may be additional risks about which the Company
is presently unaware or that the Company currently believes are
immaterial that could also cause actual results to differ from
those contained in the forward-looking statements. The reader
should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. The Company
expressly disclaims any duty to update these forward-looking
statements, except as otherwise required by law.
1 The total consideration to be received by the Company is
subject to certain deferred payments, including seller financing,
and holdbacks and other adjustments, as described in the Company’s
Current Report on Form 8-K filed today with the Securities and
Exchange Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214185324/en/
Media Contact Benson Hill Christi Dixon 636-359-0797
cdixon@bensonhill.com Media Kit
Investor Contact Benson Hill Tana Murphy 314-579-3184
Investors@bensonhill.com
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