Enviva Partners, LP Completes $55 Million Private Placement of Senior Unsecured Notes

Written By: Stratton Report
October 12, 2017

Enviva

Enviva Partners recently announced the completion of the issuance of $55 million in aggregate principal amount of 8.50% senior unsecured notes due 2021 at a price of 106.25% of par plus accrued interest from May 1, 2017, representing a yield to maturity of approximately 6.7%.

The Additional Notes had been sold to an institutional investor in a private placement transaction and have the same terms as the outstanding 8.50% senior unsecured notes due 2021, which the Partnership issued in November 2016 in an original aggregate principal amount of $300 million, but have not been registered under the Securities Act of 1933, as amended.

The Partnership also entered into a Registration Rights Agreement to register the Additional Notes pursuant to an exchange offer. Assuming an exchange offer is completed and all Additional Notes are tendered, the Partnership expects the notes issued in exchange for the Additional Notes and the Existing Notes will be treated as a single class of debt securities under the same indenture. The Partnership intends to use the net proceeds from the Additional Notes to repay borrowings on its revolving credit facility, which were used to fund the previously announced acquisition of Enviva Port of Wilmington, LLC and for general partnership purposes.