Enviva to price $150 million tap of 6½% notes due 2026 on Monday

By Paul A. Harris

Portland, Ore., June 29 – Enviva Partners, LP and Enviva Partners Finance Corp. plan to price a $150 million add-on to their 6½% senior notes due Jan. 15, 2026 (existing unsecured ratings B1/B+/BB-) in a Monday drive-by trailing a mid-morning conference call with investors, according to a market source.

Lead left bookrunner Barclays bill and deliver. BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC are the joint bookrunners. Regions Securities LLC is the co-manager.

The Rule 144A and Regulation S for life notes become callable after Nov. 15, 2021 at 103.25.

Proceeds will be used to fund a portion of the cash consideration for each of the acquisitions, to repay debt under the senior secured revolving credit facility and for general partnership purposes.

On June 18 the Bethesda, Md.-based master limited partnership, which owns and operates wood pellet production facilities, announced it had agreed to purchase a wood pellet production plant in Waycross, Ga., with associated export terminal capacity in Savannah, Ga., and also agreed to purchase a wood pellet production plant in Greenwood, S.C.

The original $550 million issue of 6½% senior notes due 2027 priced in November 2019. A previous $50 million add-on priced in December 2019.

The Rule 144A add-on notes are to become immediately fungible with the existing notes. The Regulation S add-on notes are to become fungible with existing notes after 40-day grace period.

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