Green Plains (GPRE) stock soared 6.97% in intraday trading on Wednesday, following news that the biofuel maker has successfully negotiated an extension for its $128 million debt repayment. The company has pledged the majority of its ethanol plants as collateral to funds managed by BlackRock (BLK) in exchange for pushing the payment deadline to September 2026.
According to Bloomberg reports, Green Plains has expanded its collateral to include a ninth plant as a guarantee for the junior mezzanine notes. This strategic move appears to have boosted investor confidence in the company's financial management and long-term viability in the competitive biofuels market.
The debt restructuring comes at a time when the energy sector is facing challenges, with crude oil prices declining and the International Energy Agency trimming its 2025 demand-growth forecast. Despite these headwinds, Green Plains' ability to secure more favorable debt terms has clearly resonated positively with the market, driving the significant stock price increase.