Enviva Partners, LP (Partnership) has completed the previously announced purchase (the “Hamlet Transaction”) of its sponsor’s interest in its first development joint venture, Enviva Wilmington Holdings, LLC (the “First JV”).
The First JV owns a wood pellet production plant under construction in Hamlet, North Carolina (the “Hamlet plant”) and a firm, 15-year take-or-pay off-take contract, adding incremental sales volume of approximately 500,000 metric tons per year to the Partnership.
In addition, the Partnership announced that it has made the second and final payment (the “Second Payment”) for its October 2017 acquisition of the deep-water marine terminal in Wilmington, North Carolina and commenced the associated terminal services agreement to handle contracted volumes from the Hamlet plant.
As partial consideration for the Hamlet Transaction and the Second Payment, as well as partial financing for the Partnership’s previously announced production capacity expansions at its wood pellet production plants in Northampton, North Carolina and Southampton, Virginia (the “Mid-Atlantic Expansions”), the Partnership issued a total of 6,881,642 common units representing limited partner interests in the Partnership, or approximately $200 million.
The Partnership expects to finance the remainder of the capital anticipated to be required for the Hamlet Transaction, the remainder of the capital expenditures expected to be required to complete the construction of the Hamlet plant, the Second Payment, and the Mid-Atlantic Expansions with borrowings under its existing $350 million senior secured revolving credit facility.
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.
