Green plains to build high protein ingredient production facilities with US$75m financing

USA – Diversified commodity-processing company, Green Plains Inc. has announced the closing of a US$75 million 15-year term loan facility with MetLife Investment Management (MIM), due 2035.

The company will use the proceeds to finance the construction of high protein technology at Green Plains Wood River LLC as well as a yet to be announced future location.

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Green Plains has indicated that the high protein products will serve as a cornerstone ingredient for both the pet food and aquaculture industries demand for higher purity proteins with lower fiber, unique amino acid profiles and specific nutritional yeast benefits.

“This strategic project-based financing validates our transformation strategy of producing high value ingredients,” said Todd Becker, president and chief executive officer.

The financing facility has a fixed interest rate of 5.02% and is available to draw over the next 18 months, with principal payments of US$1.5 million per year beginning 24 months from the closing date.

“This strategic project-based financing validates our transformation strategy of producing high value ingredients.”

Todd Becker, president and chief executive officer.

The loan is secured by the assets of Green Plains Shenandoah LLC and Green Plains Wood River LLC and is guaranteed by the company, with the option of releasing one of these facilities as collateral subject to a loan to value ratio of greater than 50% upon reappraisal. 

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“The long-term nature and flexibility of the loan speaks to the confidence that MIM has in this technology and our direction as a company.

“We are excited to accelerate the implementation of high protein technology at additional locations to help meet the growing global demand for sustainable proteins while creating long term value for our shareholders,” said Todd.

Recently Green Plains kick-started operations of its high protein ingredient production facility located at its Shenandoah Biorefinery in Iowa.

The company revealed that it had also made the first shipment of the product from the facility destined for one of the premier ingredient processors and suppliers in the pet food industry.

Green Plains undertakes corn processing, grain handling and storage and commodity marketing and logistics services.

It is one of the leading corn processors in the world and, through its adjacent businesses and is focused on the production of high-protein feed ingredients.

The high protein feed ingredient is produced using Fluid Quip Technologies’ patented Maximized Stillage Co-products (MSC™) system which the company said adds a high value product to its portfolio.

The global animal feed protein ingredients market size exceeded US$ 150 billion in 2019 and is estimated to register more than 6.0% CAGR between 2020 and 2025 to reach US$205 billion by 2025, according to a report by Market Data Forecast.

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