Gevo says shareholders OK plan to swap out convertibles due 2017

By Susanna Moon

Chicago, June 16 – Gevo, Inc. said shareholders approved the issue of more than 19.99% of the company’s outstanding common stock upon conversion of its newly created 12% senior secured convertible notes due 2020 at the annual meeting held Thursday.

The green light from shareholders paves the way for the planned exchange with WB Gevo Inc. (Whitebox), the holder of the company’s $16.5 million of existing notes, according to a company update.

The exchange is expected to close on June 20.

As announced April 20, Gevo entered an exchange and purchase agreement under which Whitebox will exchange all $16.5 million of the existing notes for new convertibles due March 15, 2020.

The new coupon will consist of 10% payable in cash and 2% payable in kind. The notes will be convertible into shares of company stock at an initial conversion premium equal to the lesser of $1.196 per share or a premium of 15% of the stock on the date of the exchange.

Upon certain equity financing transactions by Gevo, holders will have a one-time right to reset the conversion price at a 25% premium to the share price in the equity financing in the first 90 days following the exchange. After 90 days but before 180 days after the exchange the premium rises to a 35% premium to the share price in the equity financing.

Gevo is a renewable technology, chemical products and next generation biofuels company based in Englewood, Colo.

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