Business
Gevo’s RNG Subsidiary Closes $40 Million in New Bond Sales, Refinances Debt, and Strengthens Gevo Balance Sheet
ENGLEWOOD, Colo., July 10, 2025 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) is pleased to announce that Barclays Capital Inc. has purchased $40 million of
About this update from Gevo, Inc.
[{"type":"text","content":"ENGLEWOOD, Colo., July 10, 2025 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) is pleased to announce that Barclays Capital Inc. has purchased $40 million of newly issued non-recourse tax-exempt private activity bonds (the “2025 Bonds”) issued by the Iowa Finance Authority for the benefit of Gevo’s wholly owned subsidiary, Gevo NW Iowa RNG, LLC (“Gevo RNG”). The bond proceeds were used to refinance $40 million of the previously issued Iowa Finance Authority Solid Waste Facility Revenue Bonds (Gevo NW Iowa RNG, LLC Renewable Natural Gas Project), Series 2021 (Green Bonds) (the “Previous Bonds”), which were issued in the aggregate principal amount of $68.2 million and secured by an irrevocable direct pay letter of credit. This partial refinancing of the Previous Bonds enabled Gevo to release $40 million of restricted cash that was securing the letter of credit and increase its balance sheet liquidity by approximately $30 million after paying transaction costs and funding reserves associated with the 2025 Bonds. Gevo expects to release additional restricted cash later this year by refinancing the remaining balance of the Previous Bonds through the issuance of an additional series of 2025 Bonds. Gevo RNG generates renewable natural gas (“RNG”) by collecting manure on dairy farms and placing it in anaerobic digesters installed on those farms, where biogas is captured, then refined to serve as a more sustainable alternative to fossil natural gas as a transportation fuel. Gevo RNG sells the RNG into California via a marketing agent. In March 2025, Gevo RNG received California Air Resources Board (“CARB”) certification of a carbon intensity score of negative 339 gCO2e/MJ to be used in calculating California’s Low Carbon Fuel Standard (“LCFS”) credits. Under current LCFS modeling, RNG produced by Gevo RNG is expected to yield upwards of 175,000 metric tons of carbon dioxide equivalent greenhouse gas emissions reductions annually. Gevo continues to explore increased scaling and margin expansion opportunities for its RNG business, and how to leverage it synergistically with its other lines of business. About Gevo Gevo is a next-generation diversified energy company committed to fueling America’s future with cost-effective, drop-in fuels that contribute to energy security, abate carbon, and strengthen rural communities to drive economic grow...