CORRECTING and REPLACING REG Expands Line of Credit to $150 Million
October 04 2016 - 9:50PM
Business Wire
Biomass-Based Diesel Leader Renews for Five
Years
The link to the video should be
https://www.youtube.com/watch?v=m6nBWmwfcAo (instead of
https://www.youtube.com/watch?v=KbEwZQ0tios&list=PLdeWRSRX9KD7oaVeAEgCOOMJ9T7csITCQ&index=9).
The corrected release reads:
REG EXPANDS LINE OF CREDIT TO $150
MILLION
Biomass-Based Diesel Leader Renews for Five
Years
NOTE: A video on this topic can be viewed at this link:
https://www.youtube.com/watch?v=m6nBWmwfcAo
Renewable Energy Group, Inc. (NASDAQ: REGI) announced today that
it has signed an agreement with Wells Fargo Bank Capital Finance, a
division of Wells Fargo Bank, and Fifth Third Bank to expand the
company’s line of credit to $150 million from $60 million.
Fifth Third Bank joins Wells Fargo as a lender under the line of
credit, which has been renewed through September 2021. Wells Fargo
and Fifth Third are Joint Lead Arrangers and Joint Book Runners,
each providing $75 million of the line of credit. Along with the
increase in the borrowing capacity to $150 million announced today,
the company will also have the right to request additional loans,
if consented to by the lenders, in order to further expand the
credit facility by up to $200 million. Wells Fargo initially
provided two REG wholly owned subsidiaries a $40 million line of
credit in 2011. That line was expanded to $60 million in June
2015.
“Just as the original line of credit helped REG grow to become
North America’s leading biomass-based diesel producer and marketer,
this major credit expansion better positions us for future growth,”
said Chad Stone, REG Chief Financial Officer. “We are grateful for
the continued trust and commitment our lenders have given REG and
we will use the capital to build an even stronger company as we
move forward.”
“We have supported REG through our working capital line for the
last five years and we look forward to furthering the relationship
by supporting them through this increased line of credit over the
next five years,” said Barry Felker, Relationship Manager with
Wells Fargo Capital Finance. “As a bank we have supported REG since
2006.”
“We have known REG since 2008 relating to our loan for their
Danville, Illinois facility and we have discussed ways to expand
that relationship. This line of credit does exactly that, by
providing up to $75 million of additional working capital for the
next five years,” said Mary Ann Lemonds, Vice President &
Commercial Relations Manager with Fifth Third Bank.
A video on how the line of credit has helped REG’s marketing and
logistics operation expand over the years, which is part of an
ongoing series celebrating REG’s 10-year anniversary as an
independent company, can be viewed at the company’s website,
www.regi.com or by clicking here to view the video on REG’s YouTube
channel.
About Renewable Energy Group
Renewable Energy Group, Inc. is a leading North American
advanced biofuels producer and developer of renewable chemicals.
REG utilizes a nationwide production, distribution and logistics
system as part of an integrated value chain model to focus on
converting natural fats, oils and greases into advanced biofuels
and converting diverse feedstocks into renewable chemicals. With 12
active biorefineries across the country, research and development
capabilities and a diverse and growing intellectual property
portfolio, REG is committed to being a long-term leader in
bio-based fuels and chemicals.
For more than a decade, REG has been a reliable supplier of
advanced biofuels which meet or exceed ASTM quality specifications.
REG sells REG-9000 biomass-based diesel to distributors so
consumers can have cleaner burning fuels that help diversify the
energy complex and increase energy security. REG-9000 biomass-based
diesel is distributed in most states in the US. REG also markets
ultra-low sulfur diesel and heating oil in the northeastern and
midwestern US. For more information on REG visit our website at
www.regi.com.
Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 as amended, including statements related to our ability to
increase our sales and production and maintain our position in the
marketplace among competitors and the quality of the commitment of
our lenders to our growth and success.
These forward-looking statements are based on current
expectations, estimates, assumptions and projections that are
subject to change, and actual results may differ materially from
the forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to, our
ability to make interest and other payments related to our
indebtedness and the effect of such payments on the cash flow to
fund other expenditures; our ability to borrow additional funds or
refinance our indebtedness; potential changes in governmental
programs and policies requiring or encouraging the use of biofuels;
the future price and volatility of feedstocks, petroleum and
products derived from petroleum; availability of federal and state
governmental tax credits and incentives for biomass-based diesel
production; risks associated with fire or explosion at our
facilities; unanticipated changes in the biomass-based diesel
market from which we generate almost all of our revenues;
competition in the markets in which we operate; our dependence on
sales to a single customer; technological advances or new methods
of biomass-based diesel production or the development of energy
alternatives to biomass-based diesel; and other risks and
uncertainties described from time to time in REG's annual report on
Form 10-K for the year ended December 31, 2015, quarterly reports
on Form 10-Q and other periodic filings with the Securities and
Exchange Commission. All forward-looking statements are made as of
the date of this press release and REG does not undertake to update
any forward-looking statements based on new developments or changes
in our expectations.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161004006633/en/
Renewable Energy GroupAnthony Hulen,
703-822-1972anthony.hulen@regi.com
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