Enviva Partners sets roadshow for $450 million six-year notes; initial talk mid-to-high 6% area

By Paul A. Harris

Portland, Ore., Nov. 15 – Enviva Partners, LP and Enviva Partners Finance Corp. plan to market and price a $450 million offering of six-year senior notes (existing unsecured ratings B1/B+/BB-) during the Nov. 18 week, according to market sources.

An investor conference call is scheduled to begin at 12:30 p.m. ET on Monday.

Initial guidance has the deal coming to yield in the mid-to-high 6% area, a bond trader said.

Left lead bookrunner Barclays will bill and deliver. BMO Securities, 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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