Enviva launches upsized $550 million 6½% six-year notes at par

By Paul A. Harris

Portland, Ore., Nov. 22 – Enviva Partners, LP and Enviva Partners Finance Corp. launched an upsized $550 million offering of 6½% six-year senior notes (B1/B+/BB-) at par, according to market sources.

That execution would bring the deal, which is upsized from $450 million, at the tight end of the 6½% to 6¾% official talk. Initial guidance was in the mid-to-high 6% area.

Final terms are expected later on Friday.

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

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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