Enviva closes on $120 million senior secured credit facility
Nov 15, 2012. Enviva LP has closed on a $120 million senior secured credit facility, the company’s first corporate borrowing. The proceeds of the debt offering will be used to complete the construction of two new 500,000 metric ton per year pellet mills, one each in Virginia and North Carolina, and to increase the storage capacity of Enviva’s deep-water port terminal in Chesapeake, Virginia to approximately 100,000 metric tons.
Nov 15, 2012. /Lesprom Network/. Enviva LP has closed on a $120 million senior secured credit facility, the company’s first corporate borrowing, as the company said in the press release received by Lesprom Network.
“This substantial commitment by the Joint Lead Arrangers and the other financing banks is an important step in right-sizing Enviva’s balance sheet,” said Steve Reeves, the company’s Executive Vice President and CFO. “As one of the first credit underwritings of its kind in the emerging biomass renewable energy sector, we’re delighted by the strong show of confidence from leaders in the banking industry.”
The proceeds of the debt offering will be used to complete the construction of two new 500,000 metric ton per year pellet mills, one each in Virginia and North Carolina, and to increase the storage capacity of Enviva’s deep-water port terminal in Chesapeake, Virginia to approximately 100,000 metric tons. This construction and expansion will complement Enviva’s existing manufacturing base and large operating footprint in the mid-Atlantic, Mississippi and Alabama.
When complete in 2013, Enviva’s 1.72 million tons of combined annual capacity will help fulfill existing long-term supply agreements for the company’s solid renewable fuels to major European utility customers.
“As demand for sustainable biomass fuels continues to increase worldwide, the midstream supply sector must continue to grow alongside, aggregating and processing fragmented wood resources into high-quality renewable fuels and storing, terminaling and delivering them reliably to our customers,” said John Keppler, Chairman and CEO of Enviva. “Enviva and the broader midstream sector are a crucial part of global renewable energy infrastructure. Debt capital alongside the equity capital we and our principal financial sponsor, Riverstone Holdings LLC, have invested and continue to invest is an essential part of funding our growth.”
Enviva LP is a leading midstream supplier of sustainably sourced wood pellets and other processed biomass fuel to generators in the United States and Europe.