Gevo Secures $175M Facility, Redeems $68M Bonds, Frees $35M Cash
Gevo on Feb. 6 redeemed $68 million of bonds and consolidated its debt into a $175 million facility with Orion. The deal unlocked over $35 million of restricted cash and added a $20 million revolving credit line for ethanol plant operations.
1. Refinancing Transaction Details
On February 6, Gevo completed the redemption of all outstanding bonds related to its renewable natural gas subsidiary totaling $68 million and rolled that obligation together with its North Dakota term debt into a new $175 million loan facility with Orion Infrastructure Capital.
2. Cash and Credit Enhancements
The bond redemption released more than $35 million of previously restricted cash, and Gevo simultaneously arranged a revolving credit facility of up to $20 million with Huntington National Bank to provide additional working capital for its low-carbon ethanol plant.
3. Impact on Debt Structure and Costs
This refinancing simplifies Gevo’s capital structure without changing its total debt level materially, reduces administrative costs, and enhances liquidity flexibility to support ongoing renewable fuels and carbon management operations.