Minnesota Ag Connection - Lender Agrees to Extend Maturity of Gevo Notes

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Lender Agrees to Extend Maturity of Gevo Notes
Minnesota Ag Connection - 02/14/2017

Gevo, Inc., announced Monday that WB Gevo, Ltd. (Whitebox), the holder of the Company's issued and outstanding 10% Convertible Senior Notes, due 2017, and the company have agreed to extend the maturity date of the 2017 Notes from March 15, 2017 to June 23, 2017..

Pursuant to the terms of a supplemental indenture, the terms of the 2017 Notes Extension Transaction include, among other things, the following: (i) an increase in the coupon on the 2017 Notes by two percent (2%) to twelve percent (12%); and (ii) the requirement that the Company pay down $8 million of principal on the 2017 Notes as follows: $2 million on each of March 13, 2017, April 13, 2017, May 12, 2017 and June 13, 2017, with an option for the Company to prepay all $8 million at any time in the Company's sole discretion.

As of December 31, 2016, Gevo had cash and cash equivalents of approximately $27.9 million.

In addition, as part of the 2017 Notes Extension Transaction, the Company has agreed to pay Whitebox fifteen percent (15%) of the net proceeds from its next underwritten public offering, completed prior to June 23, 2017, and to be used to reduce the then-outstanding principal of the 2017 Notes, which would be in addition to the $8 million pay-down of the 2017 Notes described above. As of December 31, 2016, the aggregate amount of the outstanding principal relating to the 2017 Notes was $26.1 million.

"This extension gives Gevo and Whitebox additional time to amend and extend the terms and maturity of the remaining portion of Gevo's senior debt. Whitebox has always been very supportive of Gevo, and we are confident that we will come up with a long-term solution that will enable us to execute on our business plan and ultimately get the company to profitability," said Dr. Patrick Gruber, Gevo's CEO.

Gevo is a leading renewable technology, chemical products, and next generation biofuels company.

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