Green Plains Inc. (NASDAQ:GPRE) has announced that it will be selling its Obion, Tennessee-based ethanol plant to POET LLC for $190 million in cash, including an estimated $20 million of working capital, to be adjusted at closing. The proceeds from the sale will be used to fully retire the junior mezzanine debt due in 2026 and will also enhance liquidity. The transaction is expected to close during the third quarter of 2025, subject to customary closing conditions and regulatory approvals.
Chris Osowski, the Chief Executive Officer of Green Plains, stated that the sale of the Obion facility reflects the company's commitment to unlocking value for shareholders and strengthening their balance sheet. This divestiture not only demonstrates the strength of their asset portfolio but also enables them to fully retire their junior mezzanine notes, which is a significant milestone in enhancing the company's financial flexibility and advancing Green Plains' carbon reduction strategy.
The company has also concluded its strategic review process, which began in February 2024. Following a comprehensive evaluation, the board of directors determined that the company is best positioned to deliver shareholder value by executing its current strategy under existing leadership. This outcome of the review has provided a clear roadmap for continued operational execution and capital discipline.
In connection with this transaction, BMO Capital Markets Corp. and Moelis & Company served as financial advisors, and Vinson & Elkins acted as legal advisors to Green Plains.
Green Plains Inc. is a leading biorefining company focused on advancing the transition to a low-carbon world through the production of renewable fuels and sustainable, high-impact ingredients. The company is actively deploying carbon capture and storage (CCS) solutions, with three of its facilities set to begin carbon capture later this year. Through innovation and operational excellence, Green Plains is reducing the carbon intensity of its products while delivering value to stakeholders. The market has reacted to these announcements by moving the company's shares -1.58% to a price of $9.95. For the full picture, make sure to review Green Plains's 8-K report.
