Biomass-Based Diesel Leader Renews for Five Years
(AMES, IA)--Renewable Energy Group, Inc. (NASDAQ: REGI) announced today that it has signed an agreement with Wells Fargo Capital Finance, a division of Wells Fargo Bank, and Fifth Third Bank to expand the company’s existing $60 million line of credit to $150 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. 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.
“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 continue 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.
“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 to view the video on REG’s YouTube channel.