REG expands its line of credit to $150 M

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REG expands its line of credit to $150 M

Renewable Energy Group, Inc. (REG) has signed an agreement with Wells Fargo Capital Finance, a division of Wells Fargo Bank, and Fifth Third Bank to expand the company’s existing US$60 million line of credit to US$150 million.

Wells Fargo initially provided two REG wholly owned subsidiaries a US$40 million line of credit in 2011. That line was expanded to US$60 million in June 2015. 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 US$75 million of the line of credit. Along with the increase in the borrowing capacity to US$150 million announced , 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 US$200 million. 

Chad Stone, REG Chief Financial Officer said:

“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. We are grateful for the continued trust and commitment our lenders have given REG and we will continue to build an even stronger company as we move forward.”

Barry Felker, Relationship Manager with Wells Fargo Capital Finance, stated: 

“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.”

 Mary Ann Lemonds, Vice President & Commercial Relations Manager with Fifth Third Bank, said:

“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."

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