German Pellets is further expanding its production capacities in North America. In Urania, a town in northern Louisiana, the construction of a new pellet production facility has been almost completed. The output will be about 1 million tonnes of wood pellets per year.
German Pellets is further expanding its production capacities in North America. In Urania, a town in northern Louisiana, the construction of a new pellet production facility has been almost completed. The output will be about 1 million tonnes of wood pellets per year.

German Pellets issues new 7.25 % corporate bond

German Pellets GmbH, one of the world’s largest manufacturers and traders of wood pellets, is issuing a new corporate bond in the Prime Standard for corporate bonds segment at the Frankfurt Stock Exchange. In the context of a public offer, German Pellets will issue a corporate bond in the volume of up to EUR 100 m with an option to increase by up to EUR 30 m to EUR 130 m.This includes also a voluntary exchange offer for the 2011/16 EUR 80 m corporate bond due on 1 April 2016.
German Pellets is planning to use the net proceeds firstly for refinancing the 2011/16 corporate bond, secondly for further growth in the context of internationalisation of the production capacities for wood pellets in the USA, and lastly for building-up the saw-mill capacities and sorting capacities at the US sites, so as to attain new stages of value-creation in wood-processing.

“Through our access to the capital markets, after two successful bond issues, we have been able to drive forward our growth plans decisively. By having realized targeted investments and acquisitions, we have strengthened our sales network and further expanded our international production capacities. Now we have decided to refinance ahead of the 2011/16 bond’s maturity date and to launch a new bond .”, notes Peter H. Leibold, Managing Director of German Pellets GmbH.

The offer is aimed at institutional investors and also private investors, the new notes have  a EUR 1,000 denomination. Looking ahead, German Pellets is examining further financing instruments outside the bond sector.
The full press release