Enviva Partners completes Greenwood drop-down acquisition

July 14, 2020

BY Enviva

Enviva Partners LP has completed the previously announced 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.

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 that have maturities between 2031 and 2041, aggregate annual deliveries of 1.4 million metric tons per year, 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 percent senior unsecured notes due 2026 on July 15, 2020, subject to customary closing conditions.

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