Renewable Energy Group Announces Proposed Offering of $500 Million “Green Bond”
Renewable Energy Group (REGI) announced plans to offer $500 million in senior secured notes due in 2028 through a private placement. Estimated net proceeds of approximately $489 million will finance or refinance eligible green projects, such as the expansion of REG's Geismar, Louisiana biorefinery. The offering will comply with regulations, being available only to qualified institutional buyers. REG is a leader in cleaner fuels, aiming to meet global demand for lower carbon options, with significant production in 2020 resulting in a 4.2 million metric tons carbon reduction.
- Offering of $500 million in senior secured notes supports capital for green projects.
- Estimated net proceeds of approximately $489 million enhance financial flexibility.
- Expansion of the Geismar biorefinery aligns with sustainability goals.
- The offering is subject to market conditions, which may affect completion.
- Dependence on successfully financing or refinancing projects introduces risks.
Renewable Energy Group, Inc. (REG) (NASDAQ: REGI) announced today that it intends to offer, subject to market conditions and other factors,
REG estimates that the net proceeds from this offering will be approximately
The Notes and related guarantees are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act or outside the United States to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The offer and sale of the Notes and related guarantees will not be registered under the Securities Act or applicable state securities laws and, unless so registered, the Notes and related guarantees may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.
About Renewable Energy Group
Renewable Energy Group, Inc. is leading the energy industry's transition to sustainability by transforming renewable resources into high-quality, cleaner fuels. REG is an international producer of cleaner fuels and one of North America’s largest producers of advanced biodiesel. REG solutions are alternatives for petroleum diesel and produce significantly lower carbon emissions. REG utilizes an integrated procurement, distribution and logistics network to operate 12 biorefineries in the U.S. and Europe. In 2020, REG produced 519 million gallons of cleaner fuel delivering 4.2 million metric tons of carbon reduction. REG is meeting the growing global demand for lower-carbon fuels and leading the way to a more sustainable future.
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. All statements other than statements of historical fact, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding the offering and aggregate principal amount of the Notes, the expected use of the net proceeds from the offering, expectations regarding the eligible green project (including the expansion of the Geismar, Louisiana biorefinery), and the expected terms of the offering. 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, market and other conditions that may affect REG’s ability to complete the offering, risks related to REG’s ability to satisfy the conditions required to close any sale of the Notes, the use of the proceeds from any sale of the Notes, factors affecting REG’s business that may affect REG’s liquidity and working capital requirements, REG’s ability to successfully finance or refinance the eligible green projects (including the expansion of REG’s Geismar, Louisiana biorefinery), impacts related to the COVID-19 or any other pandemic, and other risks and uncertainties described from time to time in REG’s annual report on Form 10-K, quarterly reports on Forms 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 its expectations, except as required by law.
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FAQ
What is Renewable Energy Group's plan for the $500 million notes?
How will the proceeds from the notes offering be utilized?
What is the maturity date for the senior secured notes offered by REG?
Who can purchase the senior secured notes from REG?
What financial impact does REG expect from the notes offering?
