FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Date of Report (Date of earliest event reported) December 9, 1999.
HIGH PLAINS CORPORATION
(Exact name of registrant as specified in its charter)
Kansas #1-8680
(State or other jurisdiction of (Commission File
incorporation) Number)
200 W. Douglas #48-0901658
Suite #820 (IRS Employer
Wichita, Kansas 67202 Identification No.)
(Address of principal
executive offices)
(316) 269-4310
(Registrant's telephone number)
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Item 5 Other Information
Wichita, Kansas - December 9, 1999 - High Plains Corporation (NASDAQ:HIPC)
today announced it has obtained a $20 million term loan from Bank of America,
National Association. The borrowing will be used to refinance existing debt
and strengthen the Company's liquidity position.
Bank of America also is making an $8 million revolving line of credit
available to High Plains.
The credit facility is for a five-year period, which may be extended for a
series of one-year renewals.
"This restructuring of our balance sheet solidifies the financial position of
the Company," said President and CEO Gary Smith. "By converting $6.5 million
of short-term debt to long-term debt, the agreement supports our strategy of
matching the amortization of our financing with the useful life of our
assets. It also provides greater financial flexibility as we adopt new
initiatives to accelerate the growth of the Company," said Smith.
A new management team, led by Smith, was installed at High Plains within the
last two years. Central to its growth strategy is decreasing the Company's
dependence on ethanol, a fuel additive distilled from grain, by developing
alternative chemical products. In November, High Plains announced it had
begun a pilot project to test production of glycerol, commonly used in
pharmaceuticals, cosmetics and pet food. Initial results of this pilot
project are due in January.
Based in Wichita, Kansas, High Plains Corporation is among the Nation's
largest producers of ethanol. The Company operates production facilities in
Colwich, Kansas; York, Nebraska; and Portales, New Mexico. Additional
information about the Company can be found at its website,
www.highplainscorp.com.
This press release contains forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Investors are cautioned that all forward-looking statements involve
risks and uncertainties, including without limitation risks of fluctuations
in feedstock commodity prices, changes in the market prices or demand for
motor fuels and Ethanol, legislative changes regarding air quality, fuel
specifications or incentive programs, as well as general market conditions,
competition and pricing. The Company believes that forward-looking
statements made by it are based upon reasonable expectations. However, no
assurances can be given that actual results will not differ materially from
those contained in such forward-looking statements. Additional information
concerning these and other factors is contained in the Company's Securities
and Exchange Commission filings, including its annual 10K, Proxy Statement,
and quarterly 10Q filings, copies of which are available from the Company
without charge.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant had duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: December 9, 1999 HIGH PLAINS CORPORATION
/s/Gary R. Smith
Gary R. Smith
President & CEO
