Gevo to raise more than USD 100m in stock, note offerings

Jun 29, 2012 - US renewable chemicals and biofuels company Gevo Inc (NASDAQ:GEVO) today said it had priced its underwritten public offerings of stock and notes, seeking more than USD 100 million (EUR 79m) in gross proceeds.

The company is to sell 12.5 million shares of common stock at USD 4.95 apiece in a deal expected to generate about USD 61.9 million before expenses. The underwriters have been given a 30-day option to buy up to an additional close to 1.9 million shares to cover any over-allotments.

Gevo will also sell USD 40 million of convertible senior notes that will pay an annual interest of 7.5% and will mature on July 1, 2022. The underwriters have a 30-day option to purchase up to a further USD 5 million of notes. The securities will be convertible at an initial conversion rate of 175.6697 common shares per USD 1,000 of notes.

The company plans to use the funds to repay part of its long-term debt, to cover the cash payment due to complete the retrofit of its plant in Luverne, Minnesota, as well as to help fund the Redfield Energy retrofit. Any remaining proceeds will be used for working capital and other corporate purposes.

The offerings are expected to be completed on or about July 5.

(USD 1.0 = EUR 0.789)

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