Renewable Energy Group, Inc. has signed an agreement with Wells Fargo Bank Capital Finance 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.
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.