Green Plains Inc said Oct. 10 that it agreed to sell three of its ethanol plants in Bluffton, Ind., Lakota, Iowa, and Riga, Mich., to Valero Energy Corp. subsidiary Valero Renewable Fuels Co. for $300 million and $28 million of working capital, which will both be paid in cash.

The deal involves 280 million gallons of nameplate capacity or approximately 20% of the company's reported ethanol production capacity.

"As we stated in May, when we outlined our Portfolio Optimization Program, we would divest assets that enable us to execute our long-term strategic objectives," Green Plains President and CEO Todd Becker said. "This sale is the first step towards our strategic objectives to prove the value of our assets and to significantly reduce or eliminate term debt by the end of 2018."

Ocean Park acted as the lead financial adviser to Green Plains on the transaction.

The company entered into another deal to acquire storage and transportation assets and the assignment of railcar leases associated with the Lakota, Bluffton and Riga ethanol plants from Green Plains Partners LP for 8.9 million units, valued at $120.9 million, which it owns in the partnership.

Both transactions are expected to close in the fourth quarter, subject to customary closing conditions and regulatory approvals.