BioFuels Journal

Ames, IA - Renewable Energy Group, Inc. (REG) (NASDAQ:REGI) announced today that it has closed its private offering of $152.0 million aggregate principal amount of 4.00% convertible senior notes due 2036 (the “Notes”).

The offering included $20.0 million aggregate principal amount of Notes issued pursuant to the full exercise of the initial purchasers’ option to purchase additional Notes.

The net proceeds from the offering were approximately $146.9 million, after deducting the initial purchasers’ discount and estimated offering expenses payable by REG.

REG used approximately $62.0 million of the net proceeds from the offering to repurchase approximately $63.9 million principal amount of REG’s outstanding 2.75% convertible senior notes due 2019 (the “2019 Notes”), including accrued but unpaid interest and commissions, in privately negotiated transactions effected through one of the initial purchasers or its affiliate as REG’s agent.

The weighted average purchase price per 2019 Note was approximately 95.29% of the principal amount of the 2019 Notes purchased.

In addition, REG used net proceeds from the offering to repurchase 4,060,323 shares of its common stock from purchasers of Notes in the offering for $35.0 million, or $8.62 per share, exclusive of fees and commissions of approximately $0.1 million, in privately negotiated transactions effected through one of the initial purchasers or its affiliate as REG’s agent.

REG intends to use the remainder of the net proceeds from the offering for working capital and other general corporate purposes, which may include additional repurchases of the 2019 Notes and shares of common stock and financing strategic transactions.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

The offer and sale of the Notes and the common stock, if any, issuable upon conversion of the Notes have not been registered under the Securities Act of 1933 or applicable state securities laws and, unless so registered, the Notes and such common stock, if any, may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws.

For more information, please contact Anthony Hulen at 703-822-1972 or [email protected]

See Related Websites/Articles:

• Renewable Energy Group, Inc.

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