Green Plains Partners IPO: What You Need to Know

Green Plains IPOCompanies are taking advantage of the stock market highs. Green Plains Inc. (NASDAQ/GPRE) is spinning off its downstream logistics business into Green Plains Partners LP and taking it public in Friday’s upcoming initial public offering (IPO). (Source: Securities and Exchange Commission, last accessed June 24, 2015.)

Who is Green Plains Partners?

Green Plains Partners is a fee-based Delaware limited partnership formed recently by its parent company Green Plains Inc. Green Plains Partners provides ethanol and fuel storage along with terminal and transportation services by owning, operating, developing, and acquiring ethanol and fuel storage tanks, terminals, transportation assets, and other related assets and businesses.

Green Plains Partners expects to be the downstream logistics service provider for its parent company’s 1.2 billion gallon-per-year ethanol marketing and distribution business. The company’s initial assets include ethanol storage facilities, fuel terminal facilities, and transportation assets.

What is Green Plains Partners’ Revenue?

In 2014, Green Plains Partners had revenue of $12.8 million, and a net income of $2.1 million. In the first three months of 2015, revenue came in at $3.4 million and net income was $0.72 million.

What is Green Plains Partners’ IPO Price?

Green Plains Partners expects its units to be priced between $19.00 and $21.00 apiece.

What is Green Plains Partners’ Stock Symbol?

Green Plains Partners plans to list its units on the NASDAQ Global Market under the ticker symbol “GPP.”

How Much Money will Green Plains Partners’ IPO Raise?

The company plans to sell 10 million units. At between $19.00 and $21.00 apiece, the IPO would raise $200 million at midpoint.

How Would Green Plains Partners Use the Money?

After deducting costs related to the IPO, the company expects net proceeds of approximately $183.6 million. $181 million, the bulk of the proceeds, will be distributed to the parent company Green Plains Inc. $1.0 million will be used to pay origination fees under a new revolving credit facility, while the remaining $1.6 million will be retained for general partnership purposes.

What is Green Plains Partners’ IPO Date?

The IPO date is set to be Friday June 26th, 2015.