GPRE Green Plains Inc

   By Bowdeya Tweh 
 

Green Plains Inc. (GPRE) has reached a deal to sell three ethanol plants to a Valero Energy Corp. (VLO) subsidiary for $300 million in cash.

Omaha, Neb.-based commodity processor Green Plains said Wednesday selling the three plants, located in Lakota, Iowa, Bluffton, Ind., and Riga, Mich., to Valero Renewable Fuels Co. is part of its plan to reduce debt. The plants account for roughly 20% of Green Plains's reported ethanol production capacity.

"This sale is the first step toward our strategic objectives to prove the value of our assets and to significantly reduce or eliminate term debt by the end of 2018," Chief Executive Todd Becker said in prepared remarks.

Green Plains also said Wednesday it has reached a deal with Green Plains Partners LP (GPP) to buy the storage and transportation assets and the assignment of railcar leases associated with the three ethanol plants. Green Plains said it would exchange about 8.9 million units it owns in the partnership, worth about $120.9 million, for the storage and transportation assets and railcar leases.

Both deals are expected to close in the fourth quarter, Green Plains said.

Shares in Green Plains rose 5% to $16.90 in after-hours trading.

Write to Bowdeya Tweh at bowdeya.tweh@wsj.com

(END) Dow Jones Newswires

October 10, 2018 18:47 ET (22:47 GMT)

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