Biomass-Based Diesel Leader Renews for Five Years
The link to the video should be https://www.youtube.com/watch?v=m6nBWmwfcAo
(instead of https://www.youtube.com/watch?v=KbEwZQ0tios&list=PLdeWRSRX9KD7oaVeAEgCOOMJ9T7csITCQ&index=9).
The corrected release reads:
REG EXPANDS LINE OF CREDIT TO $150 MILLION
Biomass-Based Diesel Leader Renews for Five Years
NOTE: A video on this topic can be viewed at this link: https://www.youtube.com/watch?v=m6nBWmwfcAo
Renewable Energy Group, Inc. (NASDAQ: REGI) announced today that it has
signed an agreement with Wells Fargo Bank Capital Finance, a division of
Wells Fargo Bank, 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.
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 by clicking here
to view the video on REG’s YouTube
channel.
About Renewable Energy Group
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.
For more than a decade, REG has been a reliable supplier of advanced
biofuels which meet or exceed ASTM quality specifications. REG sells
REG-9000 biomass-based diesel to distributors so consumers can have
cleaner burning fuels that help diversify the energy complex and
increase energy security. REG-9000 biomass-based diesel is distributed
in most states in the US. REG also markets ultra-low sulfur diesel and
heating oil in the northeastern and midwestern US. For more information
on REG visit our website at www.regi.com.
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 as
amended, including statements related to our ability to increase our
sales and production and maintain our position in the marketplace among
competitors and the quality of the commitment of our lenders to our
growth and success.
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, our ability to make interest and other
payments related to our indebtedness and the effect of such payments on
the cash flow to fund other expenditures; our ability to borrow
additional funds or refinance our indebtedness; potential changes in
governmental programs and policies requiring or encouraging the use of
biofuels; the future price and volatility of feedstocks, petroleum and
products derived from petroleum; availability of federal and state
governmental tax credits and incentives for biomass-based diesel
production; risks associated with fire or explosion at our facilities;
unanticipated changes in the biomass-based diesel market from which we
generate almost all of our revenues; competition in the markets in which
we operate; our dependence on sales to a single customer; technological
advances or new methods of biomass-based diesel production or the
development of energy alternatives to biomass-based diesel; and other
risks and uncertainties described from time to time in REG's annual
report on Form 10-K for the year ended December 31, 2015, 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 does not undertake to update any
forward-looking statements based on new developments or changes in our
expectations.
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