By Paul A. Harris
Portland, Ore., June 29 – Enviva Partners, LP and Enviva Partners Finance Corp. priced a $150 million add-on to their 6½% senior notes due Jan. 15, 2026 (existing unsecured ratings B1/B+/BB-) at 103.75 with a 5.261% yield to worst on Monday, according to a market source.
Barclays was the lead left bookrunner. Joint bookrunners were 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 Corp.
The issue price came in the middle of the 103.5 to 104 price talk.
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.
| Issuers: | Enviva Partners, LP and Enviva Partners Finance Corp.
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| Amount: | $150 million
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| Maturity: | Jan. 15, 2026
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| Security description: | Add-on to 6½% senior notes due Jan. 15, 2026
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| Lead left bookrunner: | Barclays (bill and deliver)
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| Joint bookrunners: | 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 Corp.
|
| Co-manager: | Regions Securities LLC
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| Coupon: | 6½%
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| Price: | 103.75
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| Yield to worst: | 5.261%
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| First call: | Nov. 15, 2021 at 103.25
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| Trade date: | June 29
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| Settlement date: | July 15
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| Existing unsecured ratings: | Moody's: B1
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| S&P: B+
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| Fitch: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 103.5 to 104
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| Marketing: | Drive-by
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| Original issue: | $550 million priced in November 2019
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| Previous add-on: | $50 million priced in December 2019
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| Fungibility: | Rule 144A add-on notes to become immediately fungible with existing notes; Regulation S add-on notes to become fungible with existing notes after 40-day grace period
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| Total issue size: | $750 million
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