Business Context and Reporting Period
Company: Green Plains Renewable Energy, Inc.
Filing Type: Form 8-K (Current Report)
Date: March 24, 2011
Event: Completion of an acquisition of an ethanol plant from Otter Tail Ag Enterprises, LLC, located near Fergus Falls, Minnesota.
Key Financial Metrics
- Acquisition Cost: $55 million.
- Financing Structure: Funded via cash and financing from a group of nine lenders led by AgStar Financial Services.
- Production Capacity Impact: The acquisition increases total expected ethanol production capacity to approximately 740 million gallons annually.
- Revenue/Profit/Cash Flow: The filing text does not provide specific revenue, profit, cash flow, margin, or liquidity figures for the reporting period.
Material Changes
The primary material change is the expansion of operational capacity through the purchase of the Minnesota ethanol facility. This transaction represents a significant capital deployment of $55 million and alters the company's asset base and production capabilities.
Guidance, Outlook, and Risks
Outlook: Management indicates the acquisition brings total expected ethanol production capacity to approximately 740 million gallons annually.
Risks/Contingencies: The filing does not explicitly detail new risks or contingencies associated with the acquisition beyond the standard obligations of the financing arrangement.
Investor Verification Checklist
- Verify the specific terms of the financing agreement with the nine lenders led by AgStar Financial Services.
- Confirm the exact proportion of the $55 million purchase price funded by cash versus debt.
- Review the attached press release (Exhibit 99.1) for details on the integration timeline and expected operational start date for the new facility.
- Assess the impact of the new debt load on the company's overall leverage ratios in subsequent quarterly filings.