[Biotech&Pharma] Gevo Exchanges Convertible Senior Secured Notes Maturity Date for New Notes is December 31, 2020/April 1, 2021

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ENGLEWOOD, Colo., Jan. 13, 2020 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ:GEVO) (the “Company”) announced today that Wbox 2019-3 Ltd. (“Whitebox”), as the holder of the Company's issued and outstanding 12.0% Convertible Senior Secured Notes due March 15, 2020 (the “2020 Notes”), and the Company have entered into an Exchange and Purchase Agreement (the “Purchase Agreement”) pursuant to which Whitebox has exchanged (the “Exchange”) all outstanding amounts under the existing 2020 Notes for approximately $14.4 million of the Company's newly created 12.0% Convertible Senior Secured Notes due 2020/2021 (the “New Notes”). The New Notes are convertible into the Company's common stock. The Exchange and the issuance of the New Notes occurred on January 10, 2020. 

“This Exchange is a significant milestone for Gevo. 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,” said Dr. Patrick R. Gruber, Gevo's Chief Executive Officer.

The key terms of the New Notes are as follows:

  • Principal Amount: Approximately $14.4 million after giving effect to original issue discount. 
  • Maturity Date: The New Notes will mature (the “Maturity Date”) on December 31, 2020, provided that the Maturity Date shall automatically be extended to April 1, 2021, if and only if, (i) Stockholder Approval (as defined below) has been timely obtained, and (ii) the principal balance of the New Notes (including New Notes that may be issued pursuant to the Holder Option described below) is less than $7 million by December 15, 2020. Upon the Maturity Date, the outstanding principal amount of the New Notes and any accrued interest shall be payable in cash.
  • Original Issue Discount: Two percent (2%) original issue discount. As of January 10, 2020, an aggregate $14,099,712 of principal and unpaid accrued interest was outstanding under the 2020 Notes.
  • Interest: The New Notes accrue interest at 12% per annum, with 8% payable in cash and 4% payable as Payment in Kind (“PIK”) interest. The PIK interest is paid by increasing the principal amount of the New Notes by the amount of PIK interest due.
  • Whitebox Conversion and Conversion Price: Subject to the terms and conditions of the indenture governing the New Notes (the “New Indenture”), the New Notes are convertible, at the option of the holders, into shares of the Company's common stock. The New Notes have an initial conversion price (the “Conversion Price”) equal to $2.4420 per share. The Conversion Price is subject to …

Full story available on Benzinga.com

Source Benzinga

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