Enviva Partners, LP has amended and restated its senior secured credit facility, as the company said in the press release received by Lesprom Network.
The amended and restated senior secured credit facility extends the maturity to October 2023 from April 2020, increases the revolving credit facility to $350 million from $100 million, reduces the applicable interest rate margin, and includes other improved terms as compared to the prior credit facility.
The applicable interest rate margin in the Amended & Restated Credit Facility is determined according to a total leverage ratio-based pricing grid, which for a Eurodollar revolving credit borrowing is 2.50% based on the current level of leverage as compared to 4.25% under the prior credit facility.
“With the support of our existing bank group and new partners, we have taken a significant step toward reducing Enviva’s cost of capital and increasing our financial flexibility, while maintaining conservative financial policies and leverage,” said Shai Even, Executive Vice President and CFO. “The amended terms of the credit agreement recognize the increased scale, diversification, and tremendous market opportunities Enviva enjoys and the expanded revolver will be an important tool for us to fund the accelerating growth anticipated by the Partnership over the next several years.”
Enviva Partners, LP is a publicly traded master limited partnership that aggregates a natural resource, wood fiber, and processes it into a transportable form, wood pellets.
