Gevo, Inc. Announces Closing of $25.9 Million Financing With Whitebox Advisors LLC
09 Mai 2014 - 11:45PM
Gevo, Inc. (Nasdaq:GEVO), a leading renewable technology, chemical
products, and next generation biofuels company, announced the
closing of a private debt financing (Financing) with Whitebox
Advisors LLC (Whitebox) consisting of a senior secured term loan
(Term Loan) exchangeable into senior secured convertible debentures
(Convertible Debentures).
The aggregate proceeds from the Term Loan are $25.9 million with
an option for Gevo to draw an additional $5.2 million if certain
conditions are met. The Term Loan includes a first priority lien on
all of the Company's assets and carries a 15% coupon, of which 5%
is payable in cash and 10% is payable in kind and capitalized to
the principal amount of the Term Loan. The Term Loan is
exchangeable into Convertible Debentures within 90 days of the
closing of the Financing, subject to certain ownership
limitations.
The Convertible Debentures can be converted into common stock of
the Company at a price equal to the lesser of $1.49 or a 15%
premium to the 5-day forward looking volume weighted average price
following closing of the Financing. The Convertible Debentures
carry a 10% coupon, of which 5% is payable in cash and 5% is
payable in kind and capitalized to the principal amount of the
Convertible Debentures. Under certain conditions, the 10% coupon is
payable entirely in cash at the election of Whitebox.
Whitebox may invest up to an additional $32.0 million in
Convertible Debentures within 90 days of closing of the
Financing.
Gevo used a portion of the proceeds from the financing to repay
approximately $9.3 million in outstanding long-term debt
obligations. Gevo intends to use the remaining proceeds from the
financing to ramp up production and sales at its Luverne, MN, plant
and may also use a portion of the proceeds from the financing to
fund working capital and for other general corporate purposes.
About Gevo
Gevo is a leading renewable technology, chemical products, and
next generation biofuels company. Gevo's underlying technology uses
a combination of synthetic biology, metabolic engineering,
chemistry and chemical engineering to focus primarily on the
production and sale of isobutanol, as well as related products from
renewable feedstocks. Gevo's strategy is to commercialize biobased
alternatives to petroleum-based products to allow for the
optimization of fermentation facilities' assets, with the ultimate
goal of maximizing cash flows from the operation of those assets.
Gevo produces isobutanol, ethanol and high-value animal feed at its
first fermentation plant in Luverne, MN. Gevo has also developed
technology to produce hydrocarbon products from renewable alcohols.
Gevo currently operates its first biorefinery in Silsbee, TX, to
produce renewable jet fuel, octane, and ingredients for plastics
like polyester. Gevo has a marquee list of partners including The
Coca-Cola Company, Total SA, Sasol Chemical Industries, and
LANXESS, Inc., an affiliate of LANXESS Corporation, among others.
Gevo is committed to a sustainable bio-based economy that meets
society's needs for plentiful food and clean air and water. For
more information, visit www.gevo.com.
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include statements that are not purely statements of
historical fact, and can sometimes be identified by our use of
terms such as "intend," "expect," "plan," "estimate," "future,"
"strive" and similar words. These forward-looking statements are
made on the basis of the current beliefs, expectations and
assumptions of the management of Gevo and are subject to
significant risks and uncertainty. Investors are cautioned not to
place undue reliance on any such forward-looking statements. All
such forward-looking statements speak only as of the date they are
made, and the company undertakes no obligation to update or revise
these statements, whether as a result of new information, future
events or otherwise. Although the company believes that the
expectations reflected in these forward-looking statements are
reasonable, these statements involve many risks and uncertainties
that may cause actual results to differ materially from what may be
expressed or implied in these forward-looking statements. 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 the
business of Gevo in general, see the risk disclosures in the Annual
Report on Form 10-K of Gevo for the year ended December 31, 2013
and in subsequent reports on Forms 10-Q and 8-K and other filings
made with the SEC by Gevo.
CONTACT: Media Contact:
Robin Peak
Gevo, Inc.
T: (720) 267-8632
rpeak@gevo.com
Investor Contact:
Mike Willis
Gevo, Inc.
T: (720) 267-8636
mwillis@gevo.com
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