Enviva Partners announces $300 million offering of five-year notes

By Paul A. Harris

Portland, Ore., Oct. 17 – Enviva Partners, LP announced in a Monday press release that it plans to offer $300 million of senior notes due 2021 via Rule 144A and Regulation S.

The proceeds will be deposited into an escrow account pending completion of the proposed acquisition of the entity which owns a wood pellet production plant in Sampson County, N.C., a 10-year, 420,000 metric ton per year off-take contract with an affiliate of DONG Energy, a 15-year 95,000 metric ton per year off-take contract with a joint venture between the company's sponsor and affiliates of John Hancock Life Insurance Co., and a third-party shipping contract.

If the acquisition is completed, the Bethesda, Md., wood pellet producer expects to use a portion of the proceeds, together with cash on hand and net proceeds from any issuances of additional equity, to fund the acquisition, with any remaining proceeds to repay bank debt.

Enviva is considering the issuance of up to about $30 million of equity in connection with the acquisition, potentially under its existing at-the-market equity offering, as partial consideration for the Sampson acquisition, or by other methods, subject to market conditions.

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