REG reduces debt with payoff of 60 MMgy Seneca, Ill., plant
The largest U.S. biodiesel producer Renewable Energy Group Inc. announced Dec. 27 that it has paid off long-term debt obligations of its operating biorefinery subsidiary in Seneca, Ill.
REG Seneca LLC retired its outstanding long-term debt obligation of $34.5 million on Dec. 21 with cash generated from operations since April 2010. This amended and restated credit agreement went into effect April 2010 with Portigon AG (formerly WestLB AG).
“When we acquired Seneca, we believed the restrictive debt structure was appropriate because the plant was purchased out of bankruptcy,” said Daniel J. Oh, REG president and CEO. “As REG Seneca came online and our state-of-the-art production technology was proven, the natural cash flow generated from this 60 million gallon refinery allowed us to pay off the debt. This debt repayment makes it more likely that we will be able to grow our business, implement new refining technologies and grow our employee base.”