Relevant Document:
Notice
Red River Biorefinery engaged FTI to market and sell its idled ethanol production facility, according to a notice that bond trustee UMB Bank posted to EMMA today. The sale is expected to finalize in fall 2023. The company began mulling the sale of its Grand Forks, N.D., facility in December 2022,
as reported.
The company
missed multiple
debt service payments, including its payment today, June 15, according to the notice. UMB Bank retained Miyoko Sato at Mintz Levin as counsel, according to the EMMA filing.
Red River Biorefinery is the borrower on $102.3 million of Series 2021A senior green bonds and $18 million Series 2021B subordinate green bonds issued by Grand Forks County. The company issued $4.45 million in Series 2023A Bonds and $2 million in “additional Series 2023 bonds” to provide working capital for the facility sale process, according to the notice.
The Series 2023 bonds are senior secured bonds. In connection with their issuance in May 2023, the trustee for the Series 2021 bonds and the collateral agent consented to a subordination agreement and an amendment to the collateral agreement that subordinates the Series 2021 bonds in right of payment to the Series 2023 bonds, according to the EMMA notice.
On May 8, 2022, the company’s Series 2021A bonds due December 2031 traded with $2.6 million in volume at a high and low price of 65, with a yield of 13.067%, according to
secondary trading data on EMMA. The bonds were issued at par to yield 6.625% on June 2, 2021.