Note 4 - Restricted Cash and Restricted Cash Equivalents

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Restricted Cash and Restricted Cash Equivalents [Text Block]

4. Restricted Cash and Restricted Cash Equivalents

The Company’s restricted cash and restricted cash equivalents consists of unused proceeds from the issuance of the 2021 Bonds which are restricted for the purpose of constructing the Gevo NW Iowa RNG, LLC Renewable Natural Gas Project as well as amounts pledged and assigned to Citibank, N.A., in its capacity as credit facility provider of the 2021 Bonds (the "Credit Facility Provider") as collateral for the reimbursement obligations of Gevo. As of December 31, 2021, the unused restricted bond proceeds of $24.0 million included in restricted cash is classified as current since the proceeds will be distributed within 12 months. As of December 31, 2021, the restricted collateral included in restricted cash totaled $71.2 million, $1.0 million of which secures interest payments to be made within 12 months and is classified as current. The Company is entitled to receive interest income on the restricted cash at an agreed rate of return of 0.10% but has no ability to direct the use of the restricted cash. See Note 14, Debt, for further information.

The proceeds from issuance of the 2021 Bonds are maintained by the Trustee under a Trust Indenture dated April 15, 2021 and released to the Company only to pay costs of the construction of the biogas facility operated by Gevo RNG. See Note 14, Debt, for further information on the Trust Indenture. As the proceeds of the 2021 Bonds are restricted, the amounts from bond trustee are also considered to be restricted cash. Restricted cash is included with cash and cash equivalents on the Statements of Cash Flows. 

The restricted cash held by the bond trustee as of December 31, 2021 is made up of the following (in thousands):

Restricted Cash Held by Bond Trustee
Bond proceeds	$	68,995
Disbursement of funds		(44,780	)
Interest paid on bonds		(216	)
Interest income		11
Total restricted cash held by bond trustee		24,010
Total restricted collateral		71,190
Total restricted cash and restricted cash equivalents		95,200
Current portion		(25,032	)
Long-term restricted cash and restricted cash equivalents	$	70,168