Business Context and Reporting Period
Company: Green Plains Renewable Energy, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: November 16, 2007 (Event Date: November 13, 2007)
Context: The company executed amendments to its Master Loan Agreement with Farm Credit Services of America, FLCA. These changes reflect the acquisition of Essex Elevator, Inc. and the anticipated completion of the Superior plant in early 2008.
Key Financial Metrics and Debt Structure
The filing details specific modifications to debt covenants and borrowing capacity rather than reporting operational financial results (revenue, profit, or cash flow).
- Working Capital Covenant: Reduced from $5 million to $3 million through May 31, 2008. The requirement increases to $6 million thereafter.
- Revolving Credit Supplement:
- Effective Date to January 31, 2008: Up to $6.3 million (based on inventory and accounts receivable).
- February 1, 2008 to July 1, 2008: Up to $4.3 million.
- Effective Date of Amendments: October 31, 2007.
Material Changes Versus Prior Period
The filing outlines the following material changes to the credit facility originally dated January 30, 2006:
- Subsidiary Recognition: Formal acknowledgement of Essex Elevator, Inc. as a subsidiary.
- Covenant Adjustments: Modification of affirmative and negative covenants to accommodate the new subsidiary structure.
- Liquidity Terms: Introduction of a statused revolving credit supplement with tiered borrowing limits based on the timeline.
Guidance, Outlook, and Risks
Management Commentary: The amendments were driven by changes in circumstances resulting from the Essex Elevators acquisition and the expected completion of the Superior plant in early 2008.
Risks and Contingencies: The filing does not explicitly list new risks, though the reduction in working capital covenants and the reliance on inventory/receivables for credit availability imply ongoing liquidity management requirements.
Key Facts for Investor Verification
- Verify the impact of the Essex Elevator, Inc. acquisition on consolidated financial statements in subsequent filings.
- Confirm the status of the Superior plant completion relative to the early 2008 timeline mentioned.
- Monitor compliance with the reduced working capital covenant of $3 million through May 31, 2008.
- Review the utilization of the new revolving credit facility against inventory and accounts receivable levels.