Yes, GPP Can Meet Its Debt Obligations

There was an article with the scary title "Green Plains Partners: Distributions Are Still Risky Thanks To Credit Facility Terms" on Seeking Alpha this morning.  If you saw it and it got you worried, just read my comment, here: https://seekingalpha.com/article/4387985-green-plains-partners-distributions-are-still-risky-thanks-to-credit-facility-terms#comment-87043287

There is no change: Green Plains Partners is using substantially all its free cash flow to pay down debt.  It will continue to do so until the debt is paid off or refinanced under less onerous terms.  At the current rate, the debt will be paid off by the end of 2022.  The overall debt burden will be reduced enough that GPP may be able to negotiate better financing terms in late 2021 or early 2022, but I am not banking on any increase in the current dividend until early 2023.  However, the stock may begin to appreciate sooner, as investors see the prospect of refinancing debt and increasing distributions edge nearer.

In the meantime, we're being paid a little over 6% on our money to wait for the debt to be repaid.

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Tom Konrad, Ph.D., CFA

creating writing/journalism

Tom Konrad, Ph.D., CFA

creating writing/journalism

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