Green Plains Upgrades as Ethanol Plant Sale Clears Debt Overhang

Green Plains upgraded at Oppenheimer after selling its Rives, Tennessee, ethanol plant to POET LLC for $190M, clearing a debt overhang. The deal marks a significant move by new CEO Chris Osowski and sends shares up 11% to a YTD high.

Green Plains Inc. (NASDAQ: GPRE) has announced the sale of its Rives, Tennessee, ethanol plant to POET LLC for $190 million in cash, inclusive of an estimated $20 million in working capital. The transaction is expected to close during the third quarter of 2025, subject to customary closing conditions, regulatory approvals, and standard representations, warranties, and indemnification obligations [1].

The proceeds from the sale will be utilized to retire the junior mezzanine debt due in 2026 and enhance liquidity. This move reflects Green Plains' commitment to unlocking value for shareholders and strengthening its balance sheet. The sale also enables the company to fully retire its junior mezzanine notes, a significant milestone in enhancing its financial flexibility and advancing its carbon reduction strategy [1].

The strategic review process, which began in February 2024, concluded with the board of directors determining that the company is best positioned to deliver shareholder value by executing its current strategy under existing leadership. This decision provides a clear roadmap for continued operational execution and capital discipline [1].

The sale of the Rives facility is the first significant move by new CEO Chris Osowski, who was appointed last week. The deal marks a turning point for the company as it navigates through an oversupply of ethanol and pressure from electric vehicles curbing overall fuel consumption. Green Plains is now focusing on its new carbon-capture pipeline and the expected boost in the nation’s ethanol-blending requirement starting next year [2].

The ability to repay the debt owned by BlackRock funds marks a significant milestone for the company. The sale of the ethanol plant to POET LLC will help Green Plains clear its debt overhang and improve its financial flexibility, which is crucial for its long-term strategic goals [2].

Green Plains' shares surged as much as 13% after regular-trading hours following the announcement, before erasing gains. The stock has since rebounded, with shares up 11% to a YTD high. The upgrade by Oppenheimer Research, which initiated coverage on the stock, has been cited as a positive factor contributing to the stock's performance [2].

References:
[1] https://www.stocktitan.net/news/GPRE/green-plains-enters-into-agreement-to-sell-obion-tennessee-plant-to-y6741ibyrd1r.html
[2] https://www.bloomberg.com/news/articles/2025-08-27/green-plains-sells-ethanol-plant-to-repay-debt-held-by-blackrock