The original notes were due in March 2020, and the two parties reached an exchange and purchase agreement to push the maturity date back to December 31, 2020 or April 1, 2021.
"This exchange is a significant milestone for Gevo,” CEO Patrick Gruber said. “With the extension of the maturity date for our senior debt, Gevo can focus on securing more 'take or pay' offtake agreements and arranging financing to build out its biogas business and construct the larger production facilities that Gevo will need to produce the renewable transportation fuels for those offtake agreements.”
The new notes also accrue interest at a rate of 12% per month, with 8% payable in cash and 4% as interest payable in kind. Whitebox has the option to purchase up to an additional $7.1 million in new notes.
Gevo is permitted to redeem the news notes in cash at any time after receiving shareholder approval and 120 days of written notice, the company said.
Gevo, based in Englewood, Colorado, is commercializing the next generation of gasoline, jet fuel and diesel fuel with the potential to achieve zero carbon emissions, addressing the need to reduce greenhouse gas emissions with sustainable alternatives.
Contact Andrew Kessel at [email protected]
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