REG Grays Harbor, LLC, a wholly-owned subsidiary of Renewable Energy Group, Inc. (NASDAQ:REGI), has secured an additional $5 million credit facility from Umpqua Bank to fund further capital expenditures and improvements at the 100 million gallon nameplate biodiesel refinery, the company announced today.
REG secured an initial $5 million non-revolving credit facility from Umpqua when the company acquired the biorefinery in August 2015. Of that line of credit, $4.5 million was used for capital improvements at the facility through July 2016.
“This new credit facility gives REG Grays Harbor additional capital to further enhance the plant’s capabilities and other continuous improvement projects,” said Chad Stone, REG Chief Financial Officer. “We appreciate the confidence Umpqua Bank has shown in REG more specifically in the operations at Grays Harbor, and we are grateful for Umpqua’s support.”
“We are very pleased with the Grays Harbor team and the biorefinery’s contribution to our network during its first year with REG,” said Derek Winkel, General Manager, REG Grays Harbor and Executive Director, Manufacturing Operations.
Officials at Umpqua also welcomed the investment. “We have enjoyed our relationship with REG Grays Harbor as a corporate banking partner and are happy to be a part of the company’s growth,” said Richard Cabrera, Executive Vice President, Corporate Banking for Umpqua Bank. “Not only is the company a vibrant member of our business community, but also a role model for innovation by providing socially conscious and environmentally friendly renewable fuel. We value our association with REG Grays Harbor and look forward to our continued contribution to its success.”
The Grays Harbor facility is REG’s largest biorefinery and one of 11 biomass-based diesel plants across the United States that make REG the leading North American producer of advanced biofuel with a total nameplate capacity of 452 million gallons annually.
A video about Grays Harbor, part of a 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 forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to the effect of increased capital on our biorefinery’s capabilities and 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.