Business Context and Reporting Period
This Form 8-K was filed by Green Plains Renewable Energy, Inc. on May 20, 2008, reporting events occurring on May 15, 2008. The filing concerns Superior Ethanol, L.L.C., a wholly-owned subsidiary, and its ethanol production facility in Superior, Iowa, which was anticipated to be completed in late spring 2008.
Key Financial Metrics and Obligations
The filing details amendments to the Master Loan Agreement and related supplements with Farm Credit Services of America, FLCA. Key financial covenants and obligations include:
- Net Worth Requirement: Superior Ethanol must maintain a net worth of at least $58.1 million starting May 31, 2008, increasing to $61.6 million by November 30, 2008.
- Equity Investment: The subsidiary must provide evidence of $3.3 million in additional equity by May 15, 2008, bringing the aggregate total equity investment to no less than $61.0 million.
- Loan Commitment Extension: The commitment for the Construction and Term Loan Supplement was extended through July 15, 2008, or a later date authorized by the lender.
The filing does not provide specific values for revenue, profit, cash flow, margins, or total debt outstanding.
Material Changes
The primary material change is the modification of existing loan agreements to reflect the anticipated completion of the Superior, Iowa facility. These amendments adjust financial covenants regarding net worth and equity contributions and extend the construction loan commitment period.
Outlook, Risks, and Management Commentary
Management indicates that the loan amendments reflect changes in circumstances due to the facility's expected completion in late spring 2008. The filing does not contain forward-looking guidance on revenue or earnings, nor does it explicitly list new risks or contingencies beyond the financial covenants imposed by the lender.
Investor Verification Checklist
- Verify that Superior Ethanol, L.L.C. has provided the required $3.3 million in additional equity by May 15, 2008.
- Confirm the subsidiary's net worth meets the $58.1 million threshold as of May 31, 2008.
- Monitor the completion status of the Superior, Iowa ethanol production facility against the late spring 2008 timeline.
- Review the full text of the loan amendments (Exhibits 10.1, 10.2, and 10.3) for additional covenants or conditions not summarized in the 8-K.