RED TRAIL ENERGY, L.L.C. (OTCMKTS:REGX) Files An 8-K Entry into a Material Definitive Agreement

RED TRAIL ENERGY, L.L.C. (OTCMKTS:REGX) Files An 8-K Entry into a Material Definitive Agreement

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Item 1.01. Entry into a Material Definitive Agreement

On March 20, 2017, Red Trail Energy, L.L.C. (“Red Trail”) entered
into a new $10 million revolving loan (the “Revolving Loan”) with
U.S. Bank National Association (“U.S. Bank”). As part of this
transaction, Red Trail signed a Credit Agreement dated March 17,
2017 (the “Credit Agreement”). The Revolving Loan replaces our
current credit facilities with First National Bank of Omaha.
Interest accrues on any outstanding balance on the Revolving Loan
at a rate of 1.77% in excess of the one-month London Interbank
Offered Rate (“LIBOR”). The maturity date of the Revolving Loan
is May 31, 2018. Red Trail’s ability to draw funds on the
Revolving Loan is subject to a borrowing base calculation as set
forth in the Credit Agreement. The Revolving Loan is subject to
certain financial covenants as set forth in the Credit Agreement.
The most significant financial covenants require us to maintain a
fixed charge coverage ratio of no less than 1.25:1.00 and a current
ratio of no less than 1.50:1.00. Our fixed charge coverage ratio
measures our ability to pay our fixed expenses. Our current ratio
measures our liquidity and ability to pay short-term and long-term
Item 5.07 Submission of Matters to a Vote of Security Holders.
Results of 2017 Annual Members Meeting
On March 23, 2017, Red Trail Energy, L.L.C. (“Red Trail”) held
its 2017 annual members’ meeting (the “Annual Meeting”) to vote
on the election of two governors whose terms were scheduled to
expire in 2017 along with an advisory vote on Red Trail’s
executive compensation called “Say-on-Pay”. The voting results
from the meeting were as follows:
Proposal One: Election of Governors
Ronald Aberle and Ambrose Hoff were elected by a plurality vote of
the members to serve terms which will expire in 2020. The votes for
the nominee governors were as follows:
Governor Nominees
Ronald Aberle
Ambrose Hoff
Proposal Two: Say-on-Pay
The members voted to endorse the Company’s system of compensating
its executive officers through the Say-on-Pay vote. The votes for
Say-On-Pay were as follows:
Item 8.01 Other Events
At the Annual Meeting, Red Trail presented certain information
which is being shared on Red Trail’s website. A copy of the
information posted on Red Trail’s website is attached hereto as
Exhibit 99.1.
The information posted on Red Trail’s website contains
forward-looking statements. Red Trail undertakes no responsibility
to update any forward looking statement. When used, the words
“believe,” “hope,” “expect,” “anticipate and similar
expressions are intended to identify forward-looking statements.
Readers should not place undue reliance on any forward-looking
statements and recognize that the statements are not predictions of
actual future results, which could and likely will differ
materially from those anticipated in the forward-looking statements
due to risks and uncertainties, including those described in our
Securities and Exchange Commission filings, copies of which are
available through Red Trail’s website or on request.
to the rules and regulations of the Securities and Exchange
Commission, the exhibit and the information set forth therein and
herein shall not be deemed to be filed for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and shall not be deemed to be incorporated by reference in
any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific
reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Website Annual Meeting Materials


Red Trail Energy, LLC is engaged in constructing, owning and operating a fuel-grade ethanol plant near Richardton, North Dakota in western North Dakota. As of September 30, 2016, the Company owned and operated a 50 million gallon annual name-plate production ethanol plant near Richardton, North Dakota. The Company’s principal products include fuel grade ethanol, distillers grains and corn oil. Ethanol is ethyl alcohol, a fuel component made primarily from corn and various other grains, which can be used as an octane enhancer in fuels; an oxygenated fuel additive for the purpose of reducing ozone and carbon monoxide vehicle emissions, and a non-petroleum-based gasoline substitute. The Company produces distillers dried grains with solubles (DDGS) and modified distillers grains with solubles (MDGS). Corn oil is used for animal feed, industrial uses and biodiesel production. The Company’s products are marketed and sold primarily within the continental United States.

RED TRAIL ENERGY, L.L.C. (OTCMKTS:REGX) Recent Trading Information

RED TRAIL ENERGY, L.L.C. (OTCMKTS:REGX) closed its last trading session 00.00 at 1.45 with 32,812 shares trading hands.

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