BioFuels Journal

Omaha, NE - Sept. 26, 2016 - Green Plains Partners LP (NASDAQ:GPP) today announced that it acquired the ethanol storage assets associated with the Madison, Ill., Mount Vernon, Ind. and York, Neb. production facilities from Green Plains Inc. (NASDAQ:GPRE) for $90 million.

The partnership used its revolving credit facility, which was recently expanded, to fund the purchase.

“We are executing on the growth strategy we laid out in our initial public offering in June of last year,” said Todd Becker, president and chief executive officer at Green Plains Partners.

“We’ve added approximately 500 million gallons of throughput volume to our platform through organic projects and acquisitions.

"In addition, we are pursuing projects within the partnership to expand our downstream logistics activities.”

The storage and throughput agreement between Green Plains Partners and Green Plains Trade was amended as part of the transaction, increasing the minimum volume commitment to 296.6 million gallons per quarter.

The acquired assets support the combined production capacity of 236 million gallons per year at the three plants.

Based on expected performance of the acquired assets, the purchase price represents an 8.5x multiple of anticipated EBITDA.

The storage assets were simultaneously purchased and sold by Green Plains as part of the $237 million purchase of three ethanol plants previously owned by Abengoa Bioenergy.

The terms of the drop down transaction were approved by the board of directors of the general partner and the board of directors’ conflicts committee, which consists entirely of independent directors.

The conflicts committee engaged Evercore to act as its independent financial advisor and Vinson & Elkins to act as its legal counsel.

For more information, please contact Jim Stark at 402-884-8700.

See Related Websites/Articles:

• Green Plains Partners LP

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