By Paul A. Harris
Portland, Ore., May 6 – Renewable Energy Group Inc. priced an upsized $550 million issue of seven-year senior secured green notes (B2/BB) at par to yield 5 7/8% on Thursday, according to market sources.
The issue size increased from $500 million.
The yield printed 12.5 basis points inside of the 6% to 6¼% yield talk. Initial guidance was in the mid-to-high 6% area.
Timing was accelerated. The deal had been scheduled to remain in the market until Friday.
The Renewable Energy green deal went very well, playing to a whopping $4.5 billion of orders, according to a bond trader, who had the notes trading at a handsome premium to new issue price at Thursday's close: 103 bid, 104 offered.
Credit Suisse Securities (USA) LLC was the left bookrunner. Joint bookrunners were BofA Securities Inc., Citigroup Global Markets Inc. and Wells Fargo Securities LLC.
The Ames, Iowa-based energy producer plans to use the proceeds to finance or refinance, in part or in full, its eligible green projects.
Renewable Energy Group produces advanced fuels focusing on providing cleaner, lower carbon transportation fuels.
| Issuer: | Renewable Energy Group, Inc.
|
| Amount: | $550 million, increased from $500 million
|
| Maturity: | June 1, 2028
|
| Securities: | Senior secured green notes
|
| Left bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc. and Wells Fargo Securities LLC
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Spread: | 465 bps
|
| First call: | June 1, 2024 at 102.938
|
| Trade date: | May 6
|
| Settlement date: | May 20
|
| Ratings: | Moody's: B2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6% to 6¼%
|
| Marketing: | Roadshow
|
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