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Gevo Inc inks deal with Wbox to issue new later-maturing convertible notes

The notes were due in March 2020 but the maturity date has now been pushed back to December 31, 2020 or April 1, 2021

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Gevo, based in Colorado, is commercializing the next generation of gasoline, jet fuel and diesel fuel with the potential to achieve zero carbon emissions

Gevo Inc (NASDAQ:GEVO) announced that Wbox 2019-3 Ltd (Whitebox) has exchanged its 12% convertible senior secured notes for $14.4 million in new notes with a later maturity date. 

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.”

READ: Gevo to supply Delta Air with 10 million gallons of sustainable aviation fuel annually

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] 

Follow him on Twitter @andrew_kessel

Quick facts: Gevo Inc

Price: 1.61 USD

NASDAQ:GEVO
Market: NASDAQ
Market Cap: $23.33 m
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