Enviva Inc. has priced $250,000,000 of bonds in the U.S. tax-exempt market (the “Bonds” or the “Tax-Exempt Green Bonds” and such offering, the “Offering”) through the Industrial Development Authority of Sumter County, Alabama (the “Issuer”). The Tax-Exempt Green Bonds, which will be issued at par, will bear interest at an annual rate of 6.00% and mature in 2052, with the option for holders to redeem at par in 2032. Enviva and the Issuer expect to close the transaction on or about July 15, 2022, subject to customary closing conditions.
Use of Proceeds
Enviva estimates that the net proceeds of this Offering will be $246,000,000, after deducting the underwriters’ discount and other transaction-related costs. The proceeds of the Offering will be loaned to Enviva pursuant to a Loan and Guaranty Agreement to fund all or a portion of the costs of the acquisition, construction, equipping, and financing of Enviva’s fully contracted wood pellet production plant to be located in Epes, Alabama, and to pay costs and expenses of the Offering.
Consistent with Enviva’s Green Finance Framework, the Bonds are designated as Green Bonds because the proceeds will be used to finance the construction of a fully contracted wood pellet production plant that will produce a low-carbon, sustainable, renewable, drop-in substitute for fossil fuels to help decarbonize industries and the global economy. Enviva’s Green Finance Framework, which guides issuances of its Green Bonds, was developed in alignment with the Green Bond Principles (2021) as published by the International Capital Markets Association (ICMA) and the Green Loan Principles (2021) published by the Loan Market Association (LMA) and the Loan Syndications and Trading Association (LSTA).
The Bonds have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or under the securities laws of any other jurisdiction, on the basis of the Bonds being exempt securities pursuant to Section 3(a)(2) of the Securities Act.
This news release is neither an offer to sell nor a solicitation of an offer to buy any securities, including the Bonds, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Other Notable Financing
Enviva also announced that it has amended and restated its senior secured revolving credit facility (the “Amended & Restated Credit Facility”) in a transaction that closed on June 30, 2022. The Amended & Restated Credit Facility extends the maturity to June 2027 from April 2026 and includes other improved terms and conditions as compared to the terms of the credit facility prior to the amendment that more appropriately reflect the conversion of the Company from a master limited partnership to a corporation at the end of 2021, and the implications of the increased scale, diversification, and accelerating growth plans of Enviva, while continuing to maintain the conservative financial policies to which the Company is committed.