RED TRAIL ENERGY, LLC (OTCMKTS:REGX) Files An 8-K Termination of a Material Definitive Agreement

RED TRAIL ENERGY, LLC (OTCMKTS:REGX) Files An 8-K Termination of a Material Definitive Agreement
Item 1.02 Termination of Material Definitive Agreement.

On October 1, 2019, Red Trail Energy, LLC (\”RTE\”) gave notice to U.S. Bank National Association (\”U.S. Bank\”) that it was terminating RTE\’s $7 million revolving loan (the \”Revolving Loan\”). RTE entered into the Revolving Loan with U.S. Bank on March 20, 2017. Interest accrued 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\”). On May 31, 2019, RTE renewed the Revolving Loan and extended the maturity date to May 31, 2020 and decreased the principle to $7 million. RTE did not have any amount outstanding on the Revolving Loan as of October 1, 2019. RTE did not incur any penalty for terminating the Revolving Loan.

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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.

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