Gevo, Inc. Announces Pricing of Common Stock and Convertible Notes Offerings
29 Juni 2012 - 3:00PM
Business Wire
Gevo, Inc. (NASDAQ: GEVO), a leading renewable chemicals and
next-generation biofuels company, announced today that it has
priced its concurrent underwritten public offerings of common stock
and 7.5% convertible senior notes due 2022.
The Company announced that it has agreed to sell 12,500,000
shares of its common stock at a public offering price of $4.95 per
share. The gross proceeds to the Company from this offering are
expected to be $61,875,000, before deducting underwriting discounts
and commissions and other estimated offering expenses. The Company
has granted the underwriters a 30-day option to purchase up to an
aggregate of 1,875,000 additional shares of common stock to cover
over-allotments, if any. All of the shares in the common stock
offering are to be sold by Gevo.
The Company also announced the pricing of its public offering of
$40,000,000 aggregate principal amount of 7.5% convertible senior
notes due 2022. The gross proceeds to the Company from this
offering are expected to be $40,000,000, before deducting
underwriting discounts and commissions and other estimated offering
expenses. The Company has granted the underwriters a 30-day option
to purchase up to an additional $5,000,000 in principal amount of
convertible senior notes on the same terms and conditions to cover
over-allotments, if any. The convertible senior notes will pay
interest semi-annually at a rate of 7.5% per year and will mature
on July 1, 2022, unless earlier repurchased, converted or redeemed.
The convertible senior notes will be convertible at the holder’s
option into shares of the Company at an initial conversion rate of
175.6697 shares of common stock per $1,000 principal amount of
convertible senior notes, equivalent to a conversion price of
approximately $5.69 per share of common stock, subject to
adjustment in certain circumstances.
The Company expects to use the net proceeds from the offerings
to repay a portion of its outstanding long-term debt obligations,
to fund the cash consideration payable to complete the retrofit of
its Luverne, Minn. plant, and to partially fund the Redfield Energy
retrofit. To the extent that the net proceeds are not used for
these purposes, the Company intends to use them to fund working
capital and for other general corporate purposes.
The offerings were made pursuant to the Company’s shelf
registration statement filed with the Securities and Exchange
Commission, and are expected to close on or about July 5, 2012,
subject to customary closing conditions.
In connection with the offerings, UBS Securities LLC and Piper
Jaffray & Co. are acting as joint book-running managers. Robert
W. Baird & Co. Incorporated is serving as co-manager for the
common stock offering. Copies of the final prospectus supplements
and accompanying prospectuses relating to the offerings, when
available, may be obtained from UBS Securities LLC at 299 Park
Avenue, New York, NY 10171, Attention: Prospectus Department, or by
calling (888) 827-7275, or from Piper Jaffray & Co. at 800
Nicollet Mall, J12S03, Minneapolis, MN 55402, Attention: Prospectus
Department, by calling (800) 747-3924 or by emailing
prospectus@pjc.com.
A registration statement relating to the shares of common stock
and convertible notes to be issued in the offerings has been filed
with the Securities and Exchange Commission (SEC) and is effective.
This press release does not constitute an offer to sell, or the
solicitation of an offer to buy, these securities, nor will there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale is not permitted.
About Gevo
Gevo is converting existing ethanol plants into biorefineries to
make renewable building block products for the chemical and fuel
industries. The Company plans to convert renewable raw materials
into isobutanol and renewable hydrocarbons that can be directly
integrated on a “drop in” basis into existing chemical and fuel
products to deliver environmental and economic benefits. Gevo is
committed to a sustainable biobased economy that meets society’s
needs for plentiful food and clean air and water.
Forward-Looking Statements
This news release contains certain forward-looking statements
that involve risks and uncertainties, including, without
limitation, statements regarding the completion, timing and size of
the proposed public offerings, Gevo’s anticipated proceeds from the
offerings, and its use of those proceeds. Actual results or
developments may differ materially from those projected or implied
in these forward-looking statements. Factors that may cause such a
difference include, without limitation, risks and uncertainties
related to market conditions and the satisfaction of customary
closing conditions related to the proposed public offerings. There
can be no assurance that Gevo will be able to complete the proposed
public offerings on the anticipated terms, or at all. 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 Gevo’s business in
general, see the risk disclosures in Gevo’s SEC filings, including
its most recent Annual Report on Form 10-K for the year ended
December 31, 2011, its Quarterly Reports on Form 10-Q filed from
time to time with the SEC, and in the final prospectus supplement
related to the public offering to be filed with the SEC. All
forward-looking statements included in this news release are based
on information available at the time of the release. Gevo is under
no obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements, whether as a result
of new information, future events or otherwise.
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