Green Plains Partners LP (GPP) will cut its quarterly distribution by almost 75 percent to $0.12 per unit. The MLP last raised its quarterly distribution by 1.1 percent to $0.475 per unit in the second quarter of 2018.

The new distribution is payable on May 8, 2020, to unitholders of record at the close of business on May 1, 2020. A new annual distribution of $0.48 yields 9.6% at a stock price of $5.00.

“We believe this decision by our board of directors will strengthen our balance sheet for the benefit of all stakeholders and create long term value for our unit holders,” said Todd Becker, president and chief executive officer of Green Plains Partners in the company's press release announcing the reduced distribution. “We are currently working with our existing lender group to extend our credit line which will likely include a change to overall commitment levels and pricing, as well as require principal amortization as part of the transaction. Our goal is to pay off the debt within the next 18 months through this distribution reduction and other actions.”

Green Plains Partners LP is a limited partnership formed by Green Plains Inc. (GPRE) to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses.