Omaha-based ethanol producer Green Plains Renewable Energy has announced plans to raise $100 million to execute its growth strategy and increase long-term shareholder value.
The company said Tuesday it is offering $100 million aggregate principal amount of Convertible Senior Notes due 2018 and bearing an interest rate of 3.25 percent.
The offering was upsized to $100 million from the originally announced $75 million due to interest from institutional buyers. The $100 million could grow even more because Green Plains has a 30-day option to sell an additional $20 million aggregate principal amount of notes, making the offer a total of $120 million.
Green Plains may use the net proceeds for potential acquisitions; investment in facilities, assets or technologies; and to repurchase some of its outstanding 5.75 percent Convertible Senior Notes due in two years. That capital raise, which took place in 2010, was for $90 million.
North America's fourth largest ethanol producer, Green Plains markets and distributes about 1 billion gallons of ethanol each year.