GPP - Green Plains Partners: Distributions Are Still Risky Thanks To Credit Facility Terms

• Green Plains Partners reduced their distributions by a massive 75% earlier in 2020.
• The risks of a further reduction still remain a real possibility.
• Whilst their historical distribution coverage was weak, it should be very strong going forwards.
• The biggest problem stems from their very weak liquidity and the onerous repayment terms of their credit facility that remove any margin of safety by consuming their free cash flow.
• Given this situation, I believe that a neutral rating is appropriate.

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