Enviva talks $450 million six-year senior notes to yield 6½%-6¾%; pricing Friday

By Paul A. Harris

Portland, Ore., Nov. 21 – Enviva Partners, LP and Enviva Partners Finance Corp. talked their $450 million offering of six-year senior notes (B1/B+/BB-) to yield 6½% to 6¾%, according to market sources.

Official talk comes in line with initial guidance in the mid-to-high 6% area.

The order books are 1½-times oversubscribed, with six to seven accounts heard to be in the deal with as much as $225 million of reverse inquiry, a trader said late Thursday afternoon.

Books were scheduled to close Thursday for all accounts except those seeing the company on Thursday. Pricing is set for Friday.

Left lead bookrunner Barclays will 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.

The Rule 144A and Regulation S for life notes, which mature in January 2026, become callable after two years at par plus 50% of the coupon. They feature a two-year 35% equity clawback at par plus the coupon and a 101% poison put.

The Bethesda, Md.-based master limited partnership, which manufactures wood pellets, plans to use the proceeds plus cash on hand to refinance its existing $355 million of 8½% senior notes due 2021, as well as to repay revolver balances and for general corporate purposes.

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