Enviva Partners, LP Completes Greenwood Drop-Down Acquisition
Enviva Partners, LP (the “Partnership” or “we”) has completed the previously announced acquisition (the “Greenwood Acquisition”) from its sponsor of Enviva Pellets Greenwood Holdings II, LLC, which, through its wholly owned subsidiaries, owns a wood pellet production plant in Greenwood, South Carolina (the “Greenwood plant”).
In connection with the Greenwood Acquisition, our sponsor has assigned to the Partnership five firm, long-term, take-or-pay off-take contracts with creditworthy Japanese counterparties (the “Associated Off-Take Contracts”) that have maturities between 2031 and 2041, aggregate annual deliveries of 1.4 million metric tons per year (“MTPY”), and an aggregate revenue backlog of $5.3 billion. Including the Associated Off-Take Contracts, the Partnership’s total weighted-average remaining term of off-take contracts has increased from 11.4 years to 12.7 years and its total product sales backlog has increased from $10.2 billion to $15.5 billion, as of April 1, 2020.
To finance the Greenwood Acquisition, as well as the Partnership’s previously announced purchase of Georgia Biomass Holding LLC, which, through its wholly owned subsidiary, owns a wood pellet production plant in Waycross, Georgia, the Partnership has completed the issuance of an aggregate of 6,153,847 common units in a private placement in exchange for gross proceeds of $200.0 million on June 23, 2020, and expects to close its previously announced private placement to eligible purchasers of $150.0 million in aggregate principal amount of 6.5% senior unsecured notes due 2026 on July 15, 2020, subject to customary closing conditions.
About Enviva Partners, LP
Enviva Partners, LP (NYSE: EVA) is a publicly traded master limited partnership that aggregates a natural resource, wood fiber, and processes it into a transportable form, wood pellets. The Partnership sells a significant majority of its wood pellets through long-term, take-or-pay off-take contracts with creditworthy customers in the United Kingdom and Europe. Including the Greenwood plant, and assuming the successful expansion thereof, the Partnership owns and operates eight plants with a combined production capacity of approximately 4.1 million MTPY in Virginia, North Carolina, South Carolina, Mississippi, and Florida. In addition, the Partnership exports wood pellets through its marine terminals at the Port of Chesapeake, Virginia and the Port of Wilmington, North Carolina and from third-party marine terminals in Mobile, Alabama and Panama City, Florida. The Partnership also has agreed to purchase a wood pellet production plant in Waycross, Georgia, which would add an additional operating plant with production capacity of approximately 800,000 MTPY and a third-party marine terminal in Savannah, Georgia.
Wushuang Ma – Investor Relations – email@example.com – (240) 482-3856
Source: Enviva Partners, LP