By Paul A. Harris
Portland, Ore., Nov. 22 – Enviva Partners, LP and Enviva Partners Finance Corp. priced an upsized $550 million issue of six-year senior notes (B1/B+/BB-) at par to yield 6½% on Friday, according to market sources.
The issue size increased from $450 million.
The yield printed at the tight end of the 6½% to 6¾% yield talk. Initial guidance was in the mid-to-high 6% area.
The deal was oversubscribed, 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. Joint bookrunners are 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 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. The additional proceeds resulting from the $100 million upsizing of the deal will also be used to repay revolver balances.
| Issuers: | Enviva Partners, LP and Enviva Partners Finance Corp.
|
| Amount: | $550 million, increased from $450 million
|
| Maturity: | Jan. 15, 2026
|
| Securities: | Senior notes
|
| Left lead bookrunner: | Barclays (bill and deliver)
|
| 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: | Riverstone
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 483 bps
|
| First call: | Nov. 15, 2021 at 103.25
|
| Trade date: | Nov. 22
|
| Settlement date: | Dec. 9
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Roadshow
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