OMAHA, NEBRASKA, US — Green Plains Inc., a diversified commodity-processing business with operations that include corn processing, grain handling and storage and commodity marketing and logistics services, announced on Sept. 9 that it has closed a $75 million, 15-year term loan facility with MetLife Investment Management (MIM), due 2035. The company said it plans to use the proceeds to finance the construction of high protein technology at Green Plains Wood River LLC as well as a yet to be announced future location.
“This strategic project based financing validates our transformation strategy of producing high value ingredients,” said Todd Becker, president and chief executive officer of Green Plains. “The long-term nature and flexibility of the loan speaks to the confidence that MIM has in this technology and our direction as a company. We are excited to accelerate the implementation of high protein technology at additional locations to help meet the growing global demand for sustainable proteins while creating long term value for our shareholders.”
According to Green Plains, the loan facility has a fixed interest rate of 5.02% and is available to draw over the next 18 months, with principal payments of $1.5 million per year beginning 24 months from the closing date.
“Our high protein products have a minimum 50% protein achieved by mechanical separation,” Becker said. “These products will serve as a cornerstone ingredient for both the pet food and aquaculture industries demand for higher purity proteins with lower fiber, unique amino acid profiles and specific nutritional yeast benefits. Our goal is to have offtake and long-term supply agreements in place as each installation begins production.”
Green Plains is one of the leading corn processors in the world and, through its adjacent businesses, is focused on the production of high-protein feed ingredients. Green Plains owns a 50% interest in Green Plains Cattle Company LLC and owns a 48.9% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP.