Warburg Pincus funding values Montana Renewables at USD 2.25bn

August 5 (Renewables Now) – Montana Renewables LLC (MRL) has turn into absolutely capitalised via a few new transactions, together with a most popular fairness funding that values the US renewable gas enterprise at about USD 2.25 billion (EUR 2.21bn).

New York-based development investor Warburg Pincus LLC has poured USD 250 million into Montana Renewables within the type of a collaborating most popular fairness safety, as introduced on Friday by MRL’s mum or dad, Calumet Specialty Merchandise Companions LP (NASDAQ:CLMT). This funding grants Warburg Pincus a seat on MRL’s four-member board of managers.

Within the meantime, Stonebriar Industrial Finance LLC, which beforehand made a USD-50-million dedication to MRL, has now spent a further USD 350 million via a pair of sale and leaseback contracts. These transactions carry a roughly 12.3% value of capital and provide sure strategic early termination choices, Calumet famous.

Concurrently, a USD-300-million convertible funding from Oaktree Capital Administration LP in MRL has been retired.

Montana Renewables is at present modifying present property on the Nice Falls facility in its residence state to course of as much as 15,000 barrels per stream day of renewable feedstocks into Renewable Diesel (RD) and Sustainable Aviation Gasoline (SAF), in addition to different low-emission sustainable options to fossil gas merchandise.

“As we speak’s announcement of elevated capitalisation additional solidifies MRL’s go-forward marketing strategy to extend capability in 2024-25 to an estimated 18,000 barrels per day, together with the optionality to transform a big portion of the plant’s manufacturing from RD to SAF,” mentioned Bruce Fleming, EVP Montana Renewables and Company Improvement.

(USD 1 = EUR 0.982)

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