Enviva Partners, LP Completes $55 Million Private Placement of Senior Unsecured Notes
BETHESDA, Md.–(BUSINESS WIRE)–Enviva Partners, LP (NYSE: EVA) (the “Partnership” or “we”) announced
today 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 (the “Additional
Notes”), representing a yield to maturity of approximately 6.7%. The
Additional Notes were 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
(the “Existing Notes”), but have not been registered under the
Securities Act of 1933, as amended. The Partnership has 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.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein, nor
shall there be any sale of these securities in any state or jurisdiction
in which such an offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. Any offering may be made only by means of an offering
memorandum.
About Enviva Partners, LP
Enviva Partners, LP (NYSE: EVA) is a publicly traded master limited
partnership that aggregates a natural resource, wood fiber, and
processes it into a transportable form, wood pellets. The Partnership
sells a significant majority of its wood pellets through long-term,
take-or-pay agreements with creditworthy customers in the United Kingdom
and Europe. The Partnership owns and operates six plants with a combined
production capacity of nearly three million metric tons of wood pellets
per year in Virginia, North Carolina, Mississippi, and Florida. In
addition, the Partnership exports wood pellets through its owned marine
terminal assets at the Port of Chesapeake, Virginia, and Port of
Wilmington, North Carolina and from third-party marine terminals in
Mobile, Alabama and Panama City, Florida.
To learn more about Enviva Partners, LP, please visit our website at www.envivabiomass.com.
Cautionary Note Concerning Forward-Looking Statements
Certain statements and information in this press release, including
those concerning our future results of operations, acquisition
opportunities, and distributions, may constitute “forward-looking
statements.” The words “believe,” “expect,” “anticipate,” “plan,”
“intend,” “foresee,” “should,” “would,” “could,” or other similar
expressions are intended to identify forward-looking statements, which
are generally not historical in nature. These forward-looking statements
are based on the Partnership’s current expectations and beliefs
concerning future developments and their potential effect on the
Partnership. Although management believes that these forward-looking
statements are reasonable when made, there can be no assurance that
future developments affecting the Partnership will be those that it
anticipates. The forward-looking statements involve significant risks
and uncertainties (some of which are beyond the Partnership’s control)
and assumptions that could cause actual results to differ materially
from the Partnership’s historical experience and its present
expectations or projections. Important factors that could cause actual
results to differ materially from forward-looking statements include,
but are not limited to: (i) the volume of products that we are able to
sell; (ii) the price at which we are able to sell our products; (iii)
failure of the Partnership’s customers, vendors, and shipping partners
to pay or perform their contractual obligations to the Partnership; (iv)
the creditworthiness of our financial counterparties; (v) the amount of
low-cost wood fiber that we are able to procure and process, which could
be adversely affected by, among other things, operating or financial
difficulties suffered by our suppliers; (vi) the amount of products that
we are able to produce, which could be adversely affected by, among
other things, operating difficulties; (vii) changes in the price and
availability of natural gas, coal, or other sources of energy; (viii)
changes in prevailing economic conditions; (ix) our inability to
complete acquisitions, including acquisitions from our sponsor, or to
realize the anticipated benefits of such acquisitions; (x) unanticipated
ground, grade, or water conditions; (xi) inclement or hazardous weather
conditions, including extreme precipitation, temperatures, and flooding;
(xii) environmental hazards; (xiii) fires, explosions, or other
accidents; (xiv) changes in domestic and foreign laws and regulations
(or the interpretation thereof) related to renewable or low-carbon
energy, the forestry products industry, or power generators; (xv)
changes in the regulatory treatment of biomass in core and emerging
markets for utility-scale generation; (xvi) inability to acquire or
maintain necessary permits or rights for our production, transportation,
and terminaling operations; (xvii) inability to obtain necessary
production equipment or replacement parts; (xviii) operating or
technical difficulties or failures at our plants or deep-water marine
terminals; (xix) labor disputes; (xx) inability of our customers to take
delivery of our products; (xxi) changes in the price and availability of
transportation; (xxii) changes in foreign currency exchange rates;
(xxiii) failure of our hedging arrangements to effectively reduce our
exposure to interest and foreign currency exchange rate risk; (xxiv)
risks related to our indebtedness; (xxv) customer rejection of our
products due to our failure to maintain effective quality control
systems at our production plants and deep-water marine terminals; (xxvi)
changes in the quality specifications for our products that are required
by our customers; (xxvii) the effects of the approval of the United
Kingdom of the exit of the United Kingdom (“Brexit”) from the European
Union, and the implementation of Brexit, in each case on our and our
customers’ businesses; and (xxiii) our ability to borrow funds and
access capital markets.
For additional information regarding known material factors that could
cause the Partnership’s actual results to differ from projected results,
please read its filings with the Securities and Exchange Commission,
including the Annual Report on Form 10-K and the Quarterly Reports on
Form 10-Q most recently filed with the SEC. Readers are cautioned not to
place undue reliance on forward-looking statements, which speak only as
of the date thereof. The Partnership undertakes no obligation to
publicly update or revise any forward-looking statements after the date
they are made, whether as a result of new information, future events, or
otherwise.