AMES, Iowa--(BUSINESS WIRE)--NOTE: A video for this press release can be accessed here: https://youtu.be/KiiP47UeroI
Renewable Energy Group, Inc. (NASDAQ: REGI) announced today the redemption in full of the $100 million Gulf Opportunity Zone (GOZone) bonds ahead of their 2033 maturity date. The bonds were issued by the Louisiana Public Facilities Authority (LPFA) to help finance construction of the company’s 75-million-gallon renewable hydrocarbon diesel refinery in Geismar, Louisiana.
In connection with the redemption, the company’s subsidiary, REG Geismar, LLC, prepaid all amounts owing under its loan agreement with the LPFA. The redemption was funded through a drawing on a letter of credit issued to the bond trustee that was fully collateralized with cash prior to the redemption.
“We redeemed the GOZone bonds prior to maturity with restricted cash to reduce our long-term debt and to eliminate costs associated with the bonds,” said Chad Stone, REG Chief Financial Officer.
REG acquired the Geismar biorefinery in June, 2014. In addition to renewable hydrocarbon diesel, the plant produces renewable naphtha and renewable LPG. A video with more information about REG Geismar can be viewed at the company’s website, www.regi.com or 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 and/or the video referenced herein contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements relating to possible future changes at our Geismar facility, including expansion of the facility, the expected returns from further investment in the facility, increasing the volume of fuel produced at the facility, and increasing the number of products made at the facility. 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, potential changes in governmental programs and policies requiring or encouraging the use of biofuels, including RFS2; the ability to obtain permits for any such changes at the facility; changes in the spread between biomass-based diesel prices and feedstock costs; the future price and volatility of feedstocks; the future price and volatility of 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, including potential losses associated with the fires at our Geismar facility; the effect of excess capacity in the biomass-based diesel industry; unanticipated changes in the biomass-based diesel market from which we generate almost all of our revenues; seasonal fluctuations in our operating results; 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; our ability to successfully implement our acquisition strategy; our ability to use our development stage life sciences technologies to produce renewable chemicals, fuels and other products on a commercial scale and at a competitive cost, and customer acceptance of the products produced; 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/or video and REG does not undertake to update any forward-looking statements based on new developments or changes in our expectations.
