Court Approves Enviva’s DIP Financing and Syndication Process
March 18, 2024
Source: Bioenergy International
In the United States (US), Enviva Inc. has announced that the US Bankruptcy Court for the Eastern District of Virginia has approved, among other matters, its previously announced US$500 million debtor-in-possession financing (DIP Facility) under the Debtor-in-Possession Credit and Note Purchase Agreement (DIP Facility Agreement) and the procedures and related materials that will govern the syndication of the DIP Facility.
According to the DIP Facility Agreement, announced on March 11, 2024, Enviva intends to offer certain Eligible Holders of shares of the company’s Common Stock, par value US$0.001 as of March 11, 2024, the opportunity to subscribe to participate in the syndication of the DIP Facility.
Each Eligible Holder may elect to participate and submit a subscription to lend any portion of the DIP loans up to an aggregate amount not to exceed US$100 million, provided that the minimum committed participation amount of DIP loans by any Eligible Holder and any of its Permitted Designees (taken together) shall not be less than US$1 million.
Eligible Holders that participate in the Opportunity will be subject to certain restrictions under the DIP Facility Agreement, including voting and information rights.