REG Geismar pays off $100 million GOZone bonds ahead of maturity
Photo: Renewable Energy Group Inc.
September 7, 2016
BY Renewable Energy Group Inc.
Renewable Energy Group Inc. announced Sept. 7 the redemption in full of the $100 million Gulf Opportunity Zone bonds ahead of their 2033 maturity date. The bonds were issued by the Louisiana Public Facilities Authority to help finance construction of the company’s 75 MMgy renewable hydrocarbon diesel refinery in Geismar, Louisiana.
In connection with the redemption, the company’s subsidiary, REG Geismar LLC, prepaid all amounts owing under its loan agreement with the LPFA. The redemption was funded through a drawing on a letter of credit issued to the bond trustee that was fully collateralized with cash prior to the redemption.
“We redeemed the GOZone bonds prior to maturity with restricted cash to reduce our long-term debt and to eliminate costs associated with the bonds,” said Chad Stone, REG chief financial officer.
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REG acquired the Geismar biorefinery in June 2014. In addition to renewable hydrocarbon diesel, the plant produces renewable naphtha and renewable LPG.
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