Renewable Energy Group Increases Line of Credit to $250 Million
AMES, Iowa--(BUSINESS WIRE)-- Renewable Energy Group, Inc. (NASDAQ: REGI) announced today that the company has extended and increased its line of credit with Wells Fargo Capital Finance, a division of Wells Fargo Bank, Fifth Third Bank, and Bank of America to a maximum of $250 million. This is a five-year extension through September 2026 of the company’s existing line of credit that was previously in the maximum amount of $150 million and would have matured at the end of September 2021.
Along with the increase in the borrowing capacity to a maximum of $250 million announced today, the company also has the right to request additional revolving loan commitments, if consented to by the lenders and subject to customary conditions, in order to further expand the line of credit to a maximum of $350 million.
“We believe this increased line of credit reflects the strength of our business model, performance track record, and growth potential that is underpinned by a strong balance sheet,” said REG Chief Financial Officer Craig Bealmear. “We are grateful for the relationship and commitment Wells Fargo and Fifth Third have shown over the past five years and are excited to welcome Bank of America into the line of credit banking group.”
“This increased line of credit signals confidence in the future of renewable fuels and the very real societal demand for cleaner, lower carbon fuels,” said REG President & CEO Cynthia ‘CJ’ Warner. “We remain focused on executing our business strategy and delivering real carbon reduction solutions that are making a positive environmental impact today.”
About Renewable Energy Group
Renewable Energy Group, Inc. is leading the energy and transportation industries’ transition to sustainability by transforming renewable resources into high-quality, sustainable fuels. Renewable Energy Group is an international producer of sustainable fuels that significantly lower greenhouse gas emissions to immediately reduce carbon impact. Renewable Energy Group utilizes a global integrated procurement, distribution and logistics network to operate 11 biorefineries in the U.S. and Europe. In 2020, Renewable Energy Group produced 519 million gallons of cleaner fuel delivering 4.2 million metric tons of carbon reduction. Renewable Energy Group is meeting the growing global demand for lower-carbon fuels and leading the way to a more sustainable future.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our borrowing capacity, our ability to request additional loan commitments, the strength of our business model, our growth potential societal demand for cleaner, lower carbon fuels, and executing our business strategy and delivering real carbon reduction solutions. 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 inability to access or increase our borrowing capacity under the credit facility, and other risks described in REG's annual report on Form 10-K for the year ended December 31, 2020, quarterly reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, and from time to time in REG's other periodic filings with the SEC. All forward-looking statements are made as of the date of this press release and we do not undertake to update any forward-looking statements based on new developments or changes in our expectations.
Source: Renewable Energy Group, Inc.
Released October 4, 2021