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Enviva receives interim approval of $500 million DIP financing
By Sarah Lizee
Olympia, Wash., March 15 – Enviva Inc. received interim approval of $500 million in debtor-in-possession financing from an informal group of creditors, according to an order filed Friday with the U.S. Bankruptcy Court for the Eastern District of Virginia.
As a reminder, the company has entered into two restructuring support agreements.
One is with an informal group of holders representing about 72% of its senior secured credit facility, about 95% of its 2026 senior notes, about 78% of bonds related to its Epes, Ala.-based plant currently under construction, and about 45% of bonds related to its greenfield project near Bond, Miss.
The second RSA is with some holders representing more than 92% of other bonds.
The company also secured commitments for the $500 million in DIP financing and other financing accommodations from the informal creditor group, a portion of which will be allocated by the company to eligible stockholders in line with a syndication process that is subject to court approval.
The DIP facility is expected to provide sufficient liquidity to support continued operations across Enviva’s business throughout the restructuring process, as well as help fund the completion of the Epes plant.
The company now has access to $150 million of the DIP financing.
Acquiom Agency Services LLC and Seaport Loan Products LLC are the DIP agents.
The financing is set to mature in nine months and bear interest at SOFR plus 800 basis points.
There is a 4% undrawn commitment premium, a 4% upfront premium, a 5% early repayment premium and a 3% exit premium.
A final hearing is scheduled for April 11.
Enviva is a wood pellet producer based in Bethesda, Md. The company filed bankruptcy on March 12 under Chapter 11 case number 24-10453.
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