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property and real estate owned by the respective entity borrowing the funds, including an assignment of all contracts and
rights pertinent to construction and on-going operations of the plant. Additionally, debt facilities of Green Plains Central City
and Green Plains Ord are cross-collateralized. These borrowing entities are also required to maintain certain combined
financial and non-financial covenants during the terms of the loans.
Green Plains Bluffton also received $22.0 million in Subordinate Solid Waste Disposal Facility Revenue Bond funds
from the city of Bluffton, Indiana, of which $19.1 million remained outstanding at December 31, 2011. The revenue bond
requires: semi-annual principal and interest payments of approximately $1.5 million through March 1, 2019; and a final
principal and interest payment of $3.745 million on September 1, 2019. The revenue bond bears interest at 7.50% per annum.
Agribusiness Segment
The Green Plains Grain loans, executed on October 28, 2011, are comprised of a $30.0 million amortizing term loan and
a $195.0 million revolving credit facility with various lenders to provide the agribusiness segment with additional term and
working capital funding. The term loan and revolving credit facility mature on November 1, 2021 and October 28, 2013,
respectively. Equal payments of principal sufficient to amortize the term loan in full over a 15-year period, plus interest, are
due on the first day of every month with the remaining outstanding balance and all accrued interest due on the loan maturity
date. The principal balance of each advance of the revolving credit facility shall be due and payable on the respective
maturity date but no later than October 28, 2013. The term loan bears interest at a fixed rate of 6.00% per annum. Advances
of the revolving credit facility are subject to interest charges at a rate per annum equal to the LIBOR rate for the outstanding
period, or the base rate, plus the respective applicable margin. At December 31, 2011, $27.8 million on the term loan and
$27.0 million on the various revolving loans were outstanding. As security for the amortizing term loan the lender received a
first priority lien on certain real estate and other property owned by the subsidiaries within the agribusiness segment. As
security for the revolving credit facility, the lender received a first priority lien on certain cash, inventory, machinery,
accounts receivable and other assets owned by subsidiaries of the agribusiness segment.
On August 15, 2011, we entered into two short-term inventory financing arrangements with a financial institution. Under
the terms of the financing agreements, we sold quantities of grain totaling $10.0 million, issued warehouse receipts to the
financial institution and simultaneously entered into agreements to repurchase the grain in future periods. The agreements
mature in January and February of 2012. We have accounted for the agreements as short-term notes, rather than sales, and
have recorded our repurchase obligation at fair value at the end of each period. At December 31, 2011, grain inventory and
the short-term notes payable were valued at $8.9 million.
Marketing and Distribution Segment
The Green Plains Trade loan is comprised of a senior secured revolving credit facility of up to $70.0 million, subject to a
borrowing base of 85% of eligible receivables. At December 31, 2011, $33.7 million was outstanding on the revolving credit
facility. The revolving credit facility expires on March 31, 2014 and bears interest at the lender’s commercial floating rate
plus 2.5% or LIBOR plus 3.5%. As security for the loan, the lender received a first-position lien on accounts receivable,
inventory and other collateral owned by Green Plains Trade.
Corporate Activities
We also have $90.0 million of 5.75% Convertible Senior Notes due 2015. The Notes represent senior, unsecured
obligations, with interest payable on May 1 and November 1 of each year. The Notes may be converted into shares of
common stock and cash in lieu of fractional shares of the common stock based on a conversion rate initially equal to 69.7788
shares of the common stock per $1,000 principal amount of Notes, which is equal to an initial conversion price of $14.33 per
share. The conversion rate is subject to adjustment upon the occurrence of specified events. We may redeem for cash all, but
not less than all, of the Notes at any time on and after November 1, 2013, if the last reported sale price of our common stock
equals or exceeds 140% of the applicable conversion price for a specified time period, at a redemption price equal to 100% of
the principal amount of the Notes, plus accrued and unpaid interest. Default with respect to any loan in excess of $10.0
million constitutes an event of default under the convertible senior notes, which could result in the convertible senior notes
being declared due and payable.