Business Context and Reporting Period
This Form 8-K was filed by Green Plains Renewable Energy, Inc. on June 8, 2008, reporting events occurring on June 2, 2008. The filing concerns Green Plains Grain Company LLC, a wholly-owned subsidiary, and details amendments to existing credit facilities with First National Bank of Omaha to address working capital requirements.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, or cash flow data. The specific financial metrics disclosed relate to debt capacity adjustments:
- Revolving Credit Note Principal: Increased from $30 million to $35 million.
- Effective Period for Increase: July 2, 2008, through March 31, 2009.
- Post-Period Principal: Reverts to $30 million after March 31, 2009.
- Non-Use Fee: Accrues on the average daily unused amount of $30 million; the fee rate remains unchanged.
Material Changes Versus Prior Period
The primary material change is the temporary expansion of the subsidiary's borrowing capacity. The original agreements, executed on April 3, 2008, were amended to increase the principal amount of the Revolving Credit Note by $5 million for a specific nine-month window. This adjustment reflects updated working capital needs compared to the initial April 2008 agreement.
Guidance, Outlook, and Risks
Management commentary indicates that the loan amendments were executed specifically to accommodate changes in working capital requirements. The filing does not provide forward-looking guidance on revenue or earnings, nor does it detail specific risks or contingencies beyond the standard obligations of the amended credit agreement.
Key Facts for Investor Verification
- Verify the subsidiary's actual drawdowns against the new $35 million limit to assess liquidity utilization.
- Confirm the impact of the non-use fee calculation on the $30 million baseline versus the increased $35 million capacity.
- Monitor the reversion of the credit line to $30 million on April 1, 2009, and its potential effect on future working capital flexibility.
- Review the full text of the attached exhibits (Amendment to Credit Agreement and Revolving Credit Note) for covenants or interest rate adjustments not summarized in the 8-K.