REG reduces long-term debt with Seneca payoff
Repayment paves way to grow and improve business
AMES, Iowa — Renewable Energy Group announced that it paid off long-term debt obligations of its operating biorefinery subsidiary in Seneca, Ill.
REG Seneca, LLC retired its outstanding long-term debt obligation of $34.5 million on Dec. 21 with cash generated from operations since April 2010. This amended and restated credit agreement went into effect April 2010 with Portigon AG (formerly WestLB AG).
“When we acquired Seneca, we believed the restrictive debt structure was appropriate because the plant was purchased out of bankruptcy,” explained REG Daniel J. Oh, president and CEO. “As REG Seneca came online and our state-of-the-art production technology was proven, the natural cash flow generated from this 60 million gallon refinery allowed us to pay off the debt.
“This debt repayment makes it more likely that we will be able to grow our business, implement new refining technologies, and grow our employee base,” Oh added.
Renewable Energy Group is a leading North American biodiesel producer with a nationwide distribution and logistics system. Utilizing an integrated value chain model, Renewable Energy Group is focused on converting natural fats, oils and greases into advanced biofuels. With more than 225 million gallons of owned/operated annual production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace.
For more than a decade, REG has been a reliable supplier of biodiesel which meets or exceeds ASTM quality specifications. REG sells REG-9000 biodiesel to distributors so Americans can have cleaner burning fuels that help lessen our dependence on foreign oil and reinforce food security.
REG-9000 branded biodiesel is distributed in most states in the U.S.