FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
 
Skip Navigation LinksHome / Press Releases / Read Press Release

Print

Barclays, Others Provide $120 Million Credit Facility to Enviva

November 15, 2012, 08:03 AM
Filed Under: Energy


Enviva LP, a leading midstream supplier of sustainably sourced wood pellets and other processed biomass fuel to generators in the United States and Europe, closed on a $120 million senior secured credit facility, the company’s first corporate borrowing. Barclays Bank, Goldman Sachs Bank and Royal Bank of Canada served as joint lead arrangers and joint book runners.

“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 chief financial officer. “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.

“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 chief executive officer 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, have invested and continue to invest is an essential part of funding our growth.”

Enviva is a midstream fuel supplier providing sustainably sourced wood pellets and other processed biomass to power generation and industrial customers seeking to decrease their dependence on fossil fuels and reduce their carbon footprint.







Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.