Enviva Partners amended and restated its senior secured revolving credit facility. The transaction closed on April 16, 2021. Barclays is Administrative Agent and Collateral Agent on the Amended & Restated Credit Facility and, together with Bank of Montreal, Citibank, N.A., Goldman Sachs Bank USA, HSBC Bank USA, N.A., JPMorgan Chase Bank, N.A., and Royal Bank of Canada acted as Joint Bookrunner, Joint Lead Arranger, and Co-Documentation Agent. AgFirst Farm Credit Bank and American AgCredit, PCA acted as Joint Bookrunners, Joint Lead Arrangers, and Co-Syndication Agents.

The amended and restated senior secured revolving credit facility (the “Amended & Restated Credit Facility”) extends the maturity to April 2026 from October 2023, increases the facility’s size to $525 million from $350 million, reduces the applicable interest rate margin, and includes other improved terms as compared to the prior credit facility. The applicable interest rate margin in the Amended & Restated Credit Facility is determined according to a total leverage ratio-based pricing grid, which for a Eurodollar revolving credit borrowing is 2.25% based on the current level of leverage as compared to 2.50% under the prior credit facility.

The Partnership expects to use future borrowings under the Amended & Restated Credit Facility to support the Partnership’s strategic growth initiatives and drop-down acquisitions, and for general partnership purposes. Enviva is committed to prudently managing its balance sheet, and continues to target a leverage ratio between 3.5x and 4.0x. Additionally, Enviva expects to continue financing strategic growth initiatives and acquisitions with 50% equity and 50% debt.

“With strong support from our bank group, we have taken another significant step toward reducing Enviva’s cost of capital and increasing our financial flexibility, while maintaining our conservative financial policies and leverage,” said Shai Even, Executive Vice President and Chief Financial Officer. “The amended credit facility is a reflection of the increased scale, diversification, and tremendous market opportunities ahead for Enviva, and the expanded revolver will be an important tool for us to fund the accelerating growth anticipated by the Partnership over the next several years.”