REG to sell up to 5M shares raising $335M

In Iowa, Renewable Energy Group announced the pricing of an underwritten public offering of 5,000,000 shares of its common stock at a public offering price of $67.00 per share. The size of the offering was upsized from 4,500,000 shares to 5,000,000 shares.

The gross proceeds to REG from this offering, before deducting underwriting discounts and commissions and offering expenses payable by REG, are expected to be $335 million. All of the shares are being offered by REG. The offering is scheduled to close on or about March 19, 2021, subject to customary closing conditions. In addition, REG has granted to the underwriters participating in the offering a 30-day option to purchase up to an additional 750,000 shares of its common stock at the public offering price, less underwriting discounts and commissions.

REG intends to use the net proceeds from this offering for working capital and other general corporate purposes, which may include the repayment of existing indebtedness and the funding of capital expenditures, including capital expenditures related to the expansion of the Geismar, Louisiana biorefinery. REG may also use a portion of the net proceeds from this offering to finance potential strategic transactions, although it currently has no binding commitments or agreements to complete any such transaction.

Credit Suisse, BofA Securities, and Guggenheim Securities are acting as joint book-running managers for the offering, and Piper Sandler and Roth Capital Partners are acting as co-managers.