ipl-logo

Green Plains Partners Case Study

565 Words3 Pages

Summary: • Green Plains Inc. recently formed the limited partnership Green Plains Partners to own, develop, operate and acquire fuel and ethanol storage tanks along with transportation assets needed to market and deliver 1.2 billion gallons of fuel grade ethanol per year. • Bank of America Merrill Lynch and Barclay’s are the lead underwriters. • Green Plains Partners, the sister company of Green Plains Inc., plans to offer 10,000,000 shares of stock with an offer amount of $241,500,000. The price target is $19-$21 per share. The company will trade on the NASDAQ under the symbol GPP. Company Overview The company’s plan is to be Green Plains Inc.’s downstream service provider supporting the 1.2 billion gallons of fuel grade ethanol produced …show more content…

The company will distribute $181 million to its parent company as reimbursement for capital expenditures during its initial asset acquisitions. The company will use an additional $1 million in fees for its new revolving credit facilities. Green Plains Partners- An Emerging Growth Company Since the company generated less than $1 billion during its last reported fiscal year, Green Plains Partners qualifies as an emerging growth company. Therefore, the company is exempt from certain filing regulations. The company only has to report two years of financial statements along with two years of management’s analysis of the company’s current financial condition. The company plans to exercise these exemptions. Competition Green Plains Partners expects little competition because of its contract to provide downstream services to Green Plains Inc. The parent company’s vertically-integrated operations and current business strategies are well-known throughout the industry, and the company faces little direct competition from other companies. Because of the integrated nature of ethanol storage and delivery, Green Plains Partners also expect little competition from the outsourcing of services provided under the contract with its parent …show more content…

Todd A. Becker is the President and Chief Executive Officer of Green Plains Holdings. He has held the positions since March 2009. Prior to Green Plains Holdings, Mr. Becker served as the Vice-President of International Marketing for ConAgra Trade Group and President of ConAgra Grain Canada. He has over 27 years’ experience in the commodities industry. Jerry L. Peters is the Chief Financial Officer for Green Plains Holdings. He was appointed to the position in March 2015. In June of 2015, Mr. Peters became a member of the board of directors. In June of 2007, Mr. Peters was appointed Chief Financial Officer of Green Plains Inc. Prior to Green Plains Holdings, Mr. Peters served as Chief Financial Officer for ONEK Partners from 1994-2006. ONEK Partners provides storage and transportation of natural gas and natural gas liquids. Green Plains Holdings Financials- Quarter Ending March 31, 2015 Revenues- $3,396,000 Net Income- $752,000 Total Assets- $43,704,000 Total Liabilities-

More about Green Plains Partners Case Study

Open Document