Renewable Energy greenshoe increases convertibles to $143.75 million

By Angela McDaniels

Tacoma, Wash., June 3 - The underwriters for Renewable Energy Group Inc.'s five-year convertible senior notes exercised their $18.75 million over-allotment option in full on Friday, increasing the size of the offering to $143.75 million from $125 million.

The company reported the greenshoe exercise in an 8-K filing with the Securities and Exchange Commission on Tuesday.

As previously reported, the company priced the convertibles after the market close Thursday to yield 2.75% with an initial conversion premium of 32.5%.

The registered, off-the-shelf deal was sold via bookrunning managers BofA Merrill Lynch and Wells Fargo Securities LLC.

About $100 million of proceeds will be used to replace a letter of credit that guarantees the Gulf Opportunity Zone bonds issued in connection with the Louisiana-based Dynamic Fuels LLC biorefinery or to redeem those bonds. Proceeds will also be used to pay the cost of capped call transactions and for general corporate purposes.

Ames, Iowa-based Renewable Energy is a biodiesel producer.

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