AMES, Iowa--(BUSINESS WIRE)--The link to the video should be https://www.youtube.com/watch?v=m6nBWmwfcAo (instead of https://www.youtube.com/watch?v=KbEwZQ0tios&list=PLdeWRSRX9KD7oaVeAEgCOOMJ9T7csITCQ&index=9).
The corrected release reads:
REG EXPANDS LINE OF CREDIT TO $150 MILLION
Biomass-Based Diesel Leader Renews for Five Years
NOTE: A video on this topic can be viewed at this link: https://www.youtube.com/watch?v=m6nBWmwfcAo
Renewable Energy Group, Inc. (NASDAQ: REGI) announced today that it has signed an agreement with Wells Fargo Bank Capital Finance, a division of Wells Fargo Bank, and Fifth Third Bank to expand the company’s line of credit to $150 million from $60 million.
Fifth Third Bank joins Wells Fargo as a lender under the line of credit, which has been renewed through September 2021. Wells Fargo and Fifth Third are Joint Lead Arrangers and Joint Book Runners, each providing $75 million of the line of credit. Along with the increase in the borrowing capacity to $150 million announced today, the company will also have the right to request additional loans, if consented to by the lenders, in order to further expand the credit facility by up to $200 million. Wells Fargo initially provided two REG wholly owned subsidiaries a $40 million line of credit in 2011. That line was expanded to $60 million in June 2015.
“Just as the original line of credit helped REG grow to become North America’s leading biomass-based diesel producer and marketer, this major credit expansion better positions us for future growth,” said Chad Stone, REG Chief Financial Officer. “We are grateful for the continued trust and commitment our lenders have given REG and we will use the capital to build an even stronger company as we move forward.”
“We have supported REG through our working capital line for the last five years and we look forward to furthering the relationship by supporting them through this increased line of credit over the next five years,” said Barry Felker, Relationship Manager with Wells Fargo Capital Finance. “As a bank we have supported REG since 2006.”
“We have known REG since 2008 relating to our loan for their Danville, Illinois facility and we have discussed ways to expand that relationship. This line of credit does exactly that, by providing up to $75 million of additional working capital for the next five years,” said Mary Ann Lemonds, Vice President & Commercial Relations Manager with Fifth Third Bank.
A video on how the line of credit has helped REG’s marketing and logistics operation expand over the years, which is part of an ongoing series celebrating REG’s 10-year anniversary as an independent company, can be viewed at the company’s website, www.regi.com or by clicking here to view the video on REG’s YouTube channel.
About Renewable Energy Group
Renewable Energy Group, Inc. is a leading North American advanced biofuels producer and developer of renewable chemicals. REG utilizes a nationwide production, distribution and logistics system as part of an integrated value chain model to focus on converting natural fats, oils and greases into advanced biofuels and converting diverse feedstocks into renewable chemicals. With 12 active biorefineries across the country, research and development capabilities and a diverse and growing intellectual property portfolio, REG is committed to being a long-term leader in bio-based fuels and chemicals.
For more than a decade, REG has been a reliable supplier of advanced biofuels which meet or exceed ASTM quality specifications. REG sells REG-9000 biomass-based diesel to distributors so consumers can have cleaner burning fuels that help diversify the energy complex and increase energy security. REG-9000 biomass-based diesel is distributed in most states in the US. REG also markets ultra-low sulfur diesel and heating oil in the northeastern and midwestern US. For more information on REG visit our website at www.regi.com.
Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements related to our ability to increase our sales and production and maintain our position in the marketplace among competitors and the quality of the commitment of our lenders to our growth and success.
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 ability to make interest and other payments related to our indebtedness and the effect of such payments on the cash flow to fund other expenditures; our ability to borrow additional funds or refinance our indebtedness; potential changes in governmental programs and policies requiring or encouraging the use of biofuels; the future price and volatility of feedstocks, petroleum and products derived from petroleum; availability of federal and state governmental tax credits and incentives for biomass-based diesel production; risks associated with fire or explosion at our facilities; unanticipated changes in the biomass-based diesel market from which we generate almost all of our revenues; competition in the markets in which we operate; our dependence on sales to a single customer; technological advances or new methods of biomass-based diesel production or the development of energy alternatives to biomass-based diesel; and other risks and uncertainties described from time to time in REG's annual report on Form 10-K for the year ended December 31, 2015, quarterly reports on Form 10-Q and other periodic filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release and REG does not undertake to update any forward-looking statements based on new developments or changes in our expectations.