UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported) |
March 22, 2021 |
GREEN PLAINS INC.
(Exact name of registrant as specified in its charter)
Iowa
(State or other jurisdiction of incorporation)
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001-32924 |
84-1652107 |
(Commission file number) |
(IRS employer identification no.) |
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1811 Aksarben Drive, Omaha, Nebraska |
68106 |
(Address of principal executive offices) |
(Zip code) |
(402) 884-8700
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
Trading Symbol |
Name of each exchange on which registered |
Common Stock, par value $0.001 per share |
GPRE |
The Nasdaq Stock Market LLC |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01Entry into a Material Definitive Agreement.
Amendment No. 5 to Rail Transportation Services Agreement
Effective March 22, 2021, in connection with the Partnership Transaction (as defined below), Green Plains Logistics LLC (“Green Plains Logistics”), a wholly owned subsidiary of Green Plains Partners LP (the “Partnership”), entered into Amendment No. 5 to the Rail Transportation Services Agreement (the “Rail Transportation Services Agreement Amendment”) with Green Plains Trade Group LLC (“Green Plains Trade”). Pursuant to the Rail Transportation Services Agreement Amendment, Green Plains Logistics agreed to a minimum capacity commitment of 68.22 million gallons with Green Plains Trade. The Rail Transportation Services Agreement Amendment is filed as Exhibit 10.1 to this Current Report on Form 8-K.
Amendment No. 5 to Ethanol Storage and Throughput Agreement
Effective March 22, 2021, in connection with the Partnership Transaction, Green Plains Ethanol Storage LLC (“Green Plains Storage”), a wholly owned subsidiary of the Partnership, entered into Amendment No. 5 to the Ethanol Storage and Throughput Agreement (the “Storage and Throughput Agreement Amendment”) with Green Plains Trade. Pursuant to the Storage and Throughput Agreement Amendment, Green Plains Trade is obligated to throughput a minimum of 217.7 million gallons per calendar quarter (previously 232.45 million gallons per calendar quarter) of product at the Partnership’s facilities. The Storage and Throughput Agreement Amendment is filed as Exhibit 10.2 to this Current Report on Form 8-K.
Amendment No. 5 to Operational Services and Secondment Agreement
Effective March 22, 2021, in connection with the Partnership Transaction, Green Plains Holdings LLC (“Green Plains Holdings”), a wholly owned subsidiary of the Partnership, entered into Amendment No. 5 to the Operational Services and Secondment Agreement (the “Operational Services and Secondment Agreement Amendment”) with the Company. Pursuant to the Operational Services and Secondment Agreement Amendment, the two parties agreed to the removal of the location no longer served. The Operational Services and Secondment Agreement Amendment is filed as Exhibit 10.3 to this Current Report on Form 8-K.
Item 2.01Completion of Acquisition or Disposition of Assets.
Closing of Asset Purchase Agreements
As previously announced, on January 25, 2021, Green Plains Ord LLC (“Green Plains Ord”), a wholly owned subsidiary of Green Plains Inc. (the “Company”) entered into an Asset Purchase Agreement to sell the ethanol plant located in Ord, Nebraska to GreenAmerica Biofuels Ord LLC (the “Ord Transaction”). Correspondingly, the Company entered into a separate asset purchase agreement with the Partnership to acquire the storage assets and assign the rail transportation assets to be disposed of in the Ord Transaction for $27.0 million (the “Partnership Transaction”). On March 22, 2021, the Company closed on both the Partnership Transaction and Ord Transaction. The $27.0 million proceeds from the Partnership Transaction were used to repay debt.
Item 7.01. Regulation FD Disclosure.
On March 23, 2021, the Company issued a press release announcing the closure of the Partnership Transaction and the Ord Transaction. A copy of the press release is being furnished hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are filed as part of this report.
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Exhibit No. |
Description of Exhibit |
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10.1 |
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10.2 |
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10.3 |
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99.1 |
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104 |
Cover Page Interactive Data File (embedded within Inline XBRL document) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Date: March 23, 2021 |
Green Plains Inc. |
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By: /s/ G. Patrich Simpkins Jr. . |
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G. Patrich Simpkins Jr. |
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Chief Financial Officer |
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(Principal Financial Officer) |
Exhibit 10.1
AMENDMENT NO. 5 TO RAIL TRANSPORTATION SERVICES AGREEMENT
THIS AMENDMENT NO. 5 TO RAIL TRANSPORTATION SERVICES AGREEMENT (this “Amendment”), is entered into and effective as of the 22nd day of March, 2021 (the “Effective Date”), by and between Green Plains Logistics LLC (the “Operator”) and Green Plains Trade Group LLC (the “Customer”). Customer and Operator are sometimes referred to in this Amendment as the “Parties” and individually as a “Party”.
WHEREAS, Green Plains Ord LLC (the “Seller”) and GreenAmerica Biofuels Ord LLC (the “Buyer”) have entered into the Asset Purchase Agreement dated January 25, 2021 (the “APA”) for the purchase by Buyer of Sellers’ ethanol plant in Ord, NE (the “Ethanol Plant”), as well as certain related assets and assumed liabilities, including, in conjunction, the assignment of certain railcar tank assets to Buyer (the “Transaction”); and
WHEREAS, in connection with the Transaction, Green Plains Inc. has agreed to purchase certain of Operator’s assets, including the assignment of certain railcar tank assets from Operator.
WHEREAS, Operator wishes to amend the Rail Transportation Services Agreement effective July 1, 2015, as amended, between the Parties (the “Agreement”) on the terms and conditions set forth herein, and may further amend the Agreement and desires to do so each time an Exhibit D changes due to the assignment of certain tank railcar assets in accordance with the APA;
NOW THEREFORE, in consideration of the mutual premises of the Parties and covenants and conditions hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Parties hereto agree as follows:
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Section 1.e. of the Agreement is hereby replaced in its entirety with the following: |
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e. |
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Minimum Capacity Commitment. Effective as of the date of closing of the Transaction, the minimum daily railcar volumetric capacity provided by Operator to the Customer, measured in gallons shall be 68.22 million (the “Minimum Capacity Commitment”). Each Exhibit D affected by the Transaction shall be amended following the date of closing of the Transaction once the assignment of specific railcar tank assets has been determined. Customer shall have the right to deliver the applicable Minimum Capacity Commitment at Loading Points each calendar day during the Term subject to all other terms and conditions in this Agreement. In the event Customer has additional Customer Product available to ship during a month, Customer will notify Operator of the availability of such Customer Product. Operator will use its best efforts to accommodate such additional Customer Product over and above the applicable Minimum Capacity Commitment, and Customer and Operator will negotiate in good faith the terms of providing Rail Services with respect to such additional Customer Product. |
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Exhibit E-4 is replaced in its entirety with the Exhibit E-4 attached hereto and incorporated herein by reference. |
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the day and year first above written.
OPERATOR: GREEN PLAINS LOGISTICS LLC
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Signature: |
/s/ Michelle Mapes |
Name: |
Michelle Mapes |
Title: |
Chief Legal & Administration Officer |
CUSTOMER: GREEN PLAINS TRADE GROUP LLC
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Signature: |
/s/ Michelle Mapes |
Name: |
Michelle Mapes |
Title: |
Chief Legal & Administration Officer |
EXHIBIT E-4
Effective as of ________________
LOADING POINTS
O’Neill, Nebraska
Central City, Nebraska
Fairmont, Minnesota
Hopewell, Virginia
Madison, Illinois
Mount Vernon, Indiana
Obion, Tennessee
Otter Tail, Minnesota
Shenandoah, Iowa
Superior, Iowa
Wood River, Nebraska
York, Nebraska
Exhibit 10.2
AMENDMENT NO. 5 TO ETHANOL STORAGE AND THROUGHPUT AGREEMENT
THIS AMENDMENT NO. 5 TO ETHANOL STORAGE AND THROUGHPUT AGREEMENT (this “Amendment”), is entered into and effective as of March 22, 2021 (the “Effective Date”), by and between Green Plains Ethanol Storage LLC (the “Operator”) and Green Plains Trade Group LLC (the “Customer”). Customer and Operator are sometimes referred to in this Amendment as the “Parties” and individually as a “Party.”
WHEREAS, Operator wishes to amend the Ethanol Storage and Throughput Agreement effective July 1, 2015, as amended, between the Parties (the “Agreement”) on the terms and conditions set forth herein. Terms used herein not defined herein shall have the meaning set forth in the Agreement;
WHEREAS, Operator now owns, operates and maintains 12 ethanol storage terminals as described on Exhibit G (each such terminal, a “Terminal” and collectively, the “Terminals”) at 11 ethanol plants described in Exhibit H which provide handling storage and throughput of denatured, fuel grade ethanol and have an aggregate shell capacity of 25.91 million gallons, which allows Operator to (a) receive deliveries of ethanol from various receipt point(s) from Customer’s Ethanol Production Facilities, (b) to store ethanol, (c) redeliver and load ethanol at various loading and/or delivery point(s), and (d) redeliver ethanol via pipeline to various other delivery points;
NOW, THEREFORE, in consideration of the mutual premises of the Parties and covenants and conditions hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:
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Section 1.f. of the Agreement is hereby replaced in its entirety with the following: |
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Minimum Throughput Capacity: Operator will provide an aggregate throughput capacity at the Terminals for Customer each calendar quarter in the amount of 217.7 million U.S. gallons (the “Minimum Throughput Capacity”), such volumes to be allocated among each of the Terminals as described in Exhibit G (each Terminal’s allocated portion, the “Specified Terminal Throughput Capacity”). Customer will exclusively deliver to the Terminals all of the ethanol produced by the Ethanol Production Facilities; provided, however, this obligation shall not prevent Customer from delivering up to a maximum of 2% of alcohol and non-transportation fuels to other terminal facilities. Customer shall have the right to deliver up to the Minimum Throughput Capacity (on a system-wide basis) to the Terminals each calendar month during the term subject to all other terms and conditions in this Agreement, on a take-or-pay basis. Customer may have additional Product available to ship during a calendar quarter and will notify Operator of such Product availability using the Nomination and Scheduling Procedures set forth in Exhibit B. Operator will use its best efforts to accommodate additional Product at a Terminal over and above the Specified Terminal Throughput Capacity; provided, however, that if the storage capacity at any of the Terminals is insufficient to maintain storage for at least six days of the expected production of the Customer’s Ethanol Production Facility adjacent to such Terminal, Customer and Operator will negotiate the terms of providing service above such level, including the potential construction of additional capacity. |
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Section 2.a. of the Agreement is hereby replaced in its entirety with the following: |
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MTVC: For each calendar quarter during the Term, Customer shall be obligated to tender for delivery to the Terminals and to nominate Customer Product for delivery, a minimum volume of 217.7 million gallons of Customer Product (the “Minimum Throughput Volume Commitment” or “MTVC”) (the “Terminal Throughput Volume Commitment” or “TTVC”). |
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The Initial Term is hereby extended for an additional one (1) year to June 30, 2029. |
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Exhibits G and H are replaced in their entirety with the Exhibits G and H attached hereto and incorporated herein by reference. |
[Signature Page Follows]
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.
OPERATOR: GREEN PLAINS ETHANOL STORAGE LLC
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Signature: |
/s/ Michelle Mapes |
Print Name: |
Michelle Mapes |
Title: |
Chief Legal & Administration Officer |
CUSTOMER: GREEN PLAINS TRADE GROUP LLC
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Signature: |
/s/ Michelle Mapes |
Print Name: |
Michelle Mapes |
Title: |
Chief Legal & Administration Officer |
Exhibit 10.3
AMENDMENT NO. 5 TO OPERATIONAL SERVICES AND SECONDMENT AGREEMENT
THIS AMENDMENT NO. 5 TO OPERATIONAL SERVICES AND SECONDMENT AGREEMENT (this “Amendment”), is entered into and effective as of March 22, 2021 (the “Effective Date”), by and between Green Plains Inc., an Iowa corporation (“GPRE”) and Green Plains Holdings LLC, a Delaware limited liability company (“GP”). GPRE and GP are sometimes herein referred to individually as a “Party” and collectively as the “Parties.”
WHEREAS, the Parties wish to amend the Operational Services and Secondment Agreement effective July 1, 2015, as amended, between the Parties (the “Agreement”) on the terms and conditions set forth herein. Terms used herein not defined herein shall have the meaning set forth in the Agreement.
NOW, THEREFORE, in consideration of the mutual premises of the Parties and covenants and conditions hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the Parties hereto agree as follows:
Exhibit A “Partnership Assets” is replaced in its entirety with the Exhibit A attached hereto and incorporated herein by reference.
[Signature Page Follows]
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the day and year first above written.
GREEN PLAINS INC.
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Signature: |
/s/ Michelle Mapes |
Name: |
Michelle Mapes |
Title: |
Chief Legal & Administration Officer |
GREEN PLAINS HOLDINGS LLC
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Signature: |
/s/ Michelle Mapes |
Name: |
Michelle Mapes |
Title: |
Chief Legal & Administration Officer |
EXHIBIT A
Partnership Assets
The Partnership Assets consist of all above and below-ground equipment, facilities and improvements owned (in whole or in part) or leased by any Partnership Entities, or with respect to which any of the Partnership Entities have the right and/or obligation to operate and/or maintain, at each of the following locations (including each of the railcar assets):
Terminals
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Entity |
Terminal Address |
BBTL, LLC |
1220 Brock Industrial Dr. Birmingham, AL 35208 |
Birmingham BioEnergy Partners, LLC |
1904 16th Street North Birmingham, AL 35204 |
BlendStar LLC |
n/a |
Bossier City BioEnergy Partners, LLC |
4800 Viking Dr. Bossier City, LA 71111 |
Collins BioEnergy Partners, LLC |
4556 Highway 49 North Mount Olive, MS 39119 |
Green Plains Capital Company LLC |
n/a |
Green Plains Ethanol Storage LLC |
See Ethanol Storage location Annex Below |
Green Plains Hopewell LLC |
701 South 6th Street Hopewell, VA 23860 |
Green Plains Logistics LLC |
n/a |
Green Plains Operating Company LLC |
n/a |
Green Plains Partners LP |
n/a |
Green Plains Trucking II LLC |
None |
Little Rock BioEnergy Partners, LLC |
324 North Buckeye North Little Rock, AR 72114 |
Louisville BioEnergy Partners, LLC |
3601 Ralph Avenue Louisville, KY 40211 |
Nashville BioEnergy Partners, LLC |
1830 Linder Industrial Dr. Nashville, TN 37209
4900 Centennial Blvd. Nashville, TN 37209 |
Oklahoma City BioEnergy Partners, LLC |
435 North Sunnylane Road Del City, OK 73117 |
Green Plains Ethanol Storage LLC Locations Annex:
87950 Hillcrest Road
Atkinson, NE 68713
49131 US Hwy 20
O’Neill, Nebraska 68763
214 20th Street
Central City, NE 68826
1125 Bixby Road
Fairmont, MN 56031
395 Bissell Street
Madison, IL 62060
8999 West Franklin Road
Mount Vernon, IN 47620
1918 McDonald Road
Rives TN 38253
24096 - 170th Avenue
Fergus Falls, MN 56537-7518
4124 Airport Road
Shenandoah IA 51601
1495 320th Ave
Superior IA 51363
7874 South 140th Road
Wood River, NE 68883-9300
1414 Road O
York, NE 68467
Storage Tanks
The ethanol storage facilities and the real property related thereto at the following locations:
Atkinson, Nebraska
O’Neill, Nebraska
Central City, Nebraska
Fairmont, Minnesota
Madison, Illinois
Mount Vernon, Indiana
Obion, Tennessee
Fergus Falls, Minnesota
Shenandoah, Iowa
Superior, Iowa
Wood River, Nebraska
York, Nebraska
Railcars
Approximately 2,274 leased railcars
Exhibit 99.1
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Green Plains Completes Sale of Ord, Nebraska Plant
OMAHA, Neb., March 23, 2021 (GLOBE NEWSWIRE) Green Plains Inc. (NASDAQ:GPRE) today announced that its subsidiary, Green Plains Ord LLC, has completed the previously announced sale of its ethanol plant located in Ord, Nebraska, to GreenAmerica Biofuels Ord LLC for $64 million, plus working capital. In conjunction with this transaction, Green Plains Partners LP (NASDAQ:GPP) today also announced it has completed the sale of the storage assets and the assignment of certain rail transportation assets associated with Green Plains Ord LLC for $27 million. The partnership’s proceeds from the transaction were used to repay debt.
About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company focused on the development and utilization of fermentation, agricultural and biological technologies in the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of cleaner low carbon biofuels, renewable feedstocks for advanced biofuels and high purity alcohols for use in cleaners and disinfectants. Green Plains is an innovative producer of Ultra-High Protein and novel ingredients for animal and aquaculture diets to help satisfy a growing global appetite for sustainable protein. The Company also owns a 48.9% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information, visit www.gpreinc.com.
About Green Plains Partners LP
Green Plains Partners LP (NASDAQ:GPP) is a fee-based Delaware limited partnership formed by Green Plains Inc. to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage terminals, transportation assets and other related assets and businesses. For more information about Green Plains Partners, visit www.greenplainspartners.com.
Green Plains Inc. Contacts
Investors: Phil Boggs | Senior Vice President, Investor Relations | 402.884.8700 | phil.boggs@gpreinc.com
Media: Leighton Eusebio | Manager, Public Relations | 402.952.4971 | leighton.eusebio@gpreinc.com
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