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Renewable Energy Group announces proposed $500 million green bond offering

Posted on by darion

Renewable Energy Group, Inc. (REG) (NASDAQ: REGI) announced today that it intends to offer, subject to market conditions and other factors, $500 million aggregate principal amount of senior secured notes due 2028 (the “Notes”) in a private placement pursuant to exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”).

REG estimates that the net proceeds from this offering will be approximately $489 million, after deducting the initial purchaser discount and estimated offering expenses incurred by REG. REG intends to use the net proceeds to finance or refinance, in part or in whole, new and/or existing eligible green projects, including the expansion of REG’s Geismar biorefinery in Louisiana.

The Notes and related guarantees are being offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act or outside the United States to persons other than “U.S. persons” pursuant to Regulation S under the Securities Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any 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 the related guarantees will not be registered under the Securities Act or applicable state securities laws and, if so registered, the Notes and the related guarantees may not be offered or sold in the United States or to persons in the United States, unless pursuant to Art. to be exempt from the registration requirements of the Securities Act and applicable state securities laws.

About the Renewable Energy Group

Renewable Energy Group, Inc. leads the energy industry towards sustainability by transforming renewable resources into high-quality, cleaner fuels. REG is an international producer of cleaner fuels and one of the largest producers of advanced biodiesel in North America. REG solutions are an alternative to diesel fuel and result in significantly lower carbon dioxide emissions. REG uses an integrated supply, distribution and logistics network to operate 12 biorefineries in the U.S. and Europe. In 2020, REG produced 519 million gallons of cleaner fuel, providing 4.2 million metric tons of carbon emissions reductions. REG meets the growing global demand for lower carbon fuels and paves the way to a more sustainable future.

Cautionary 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 condition, strategies and plans and our expectations of future operations , are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “project,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, among others, statements regarding the offering and the aggregate principal amount of the Notes, the expected use of the net proceeds of the offering, expectations regarding the eligible green project (including the expansion of the Geismar Power Plant in Louisiana biorefinery) and the expected terms of the offering. These forward-looking statements are based on current expectations, estimates, assumptions and projections, which 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 meet the conditions required to complete the sale of the Notes, the use of the proceeds from any sale of the Notes, factors affecting REG’s business that may impact REG’s liquidity and working capital requirements, REG’s ability to successfully finance or refinance eligible green projects (including the expansion of REG’s Geismar biorefinery in Louisiana), related effects to 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 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 undertakes no obligation to update any forward-looking statements based on new developments or changes in its expectations, except as required by law.