Item 1.01 Entry into a Material Definitive Agreement.
Contribution Agreement
On
In connection with the Acquisitions, the Partnership expects that it will
indirectly enter into a make-whole agreement with the Sponsor, pursuant to which
(i) the Sponsor will guarantee certain cash flows from the
In connection with the Acquisitions, the Partnership expects to enter into an
agreement with
The amount and composition of the consideration for the Acquisitions was
approved by a conflicts committee (the "Conflicts Committee") consisting of
independent members of the board of directors of
The Contribution Agreement contains customary representations and warranties regarding the Acquisitions as well as customary covenants and indemnity provisions. The consummation of the Acquisitions is subject to the satisfaction of customary closing conditions, including the performance by the parties, in all material respects, of their respective covenants as set forth in the Contribution Agreement and, subject to certain exceptions, the accuracy of their respective representations and warranties as set forth in the Contribution Agreement. There is no assurance that the conditions to the consummation of the Acquisitions will be satisfied.
The foregoing description is not complete and is subject to and qualified in its entirety by reference to the full text of the Contribution Agreement, which is filed as Exhibit 2.1 to this Current Report on Form 8-K (this "Current Report") and incorporated herein by reference.
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Item 7.01 Regulation FD Disclosure.
On
On
The information in Item 7.01 of this Current Report, including Exhibits 99.1, 99.2 and 99.3, is being "furnished" and shall not be deemed to be "filed" by the Partnership for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act.
3 Item 8.01 Other Events. Underwriting Agreement
On
The issuance and sale of the Common Units have been registered under the
Securities Act, pursuant to the Partnership's shelf registration statement on
Form S-3 (Registration No. 333-232247) filed with the
The Underwriting Agreement contains customary representations, warranties and agreements by the Partnership and customary conditions to closing, obligations of the parties and termination provisions. Additionally, the Partnership has agreed to indemnify the Underwriters against certain liabilities, including liabilities under the Securities Act, or to contribute to payments the Underwriters may be required to make because of any of those liabilities. Furthermore, the Partnership has agreed with the Underwriters not to offer or sell any Common Units (or securities convertible into or exchangeable for Common Units), subject to limited exceptions, for a period of 60 days after the date of the Underwriting Agreement without the prior written consent of the Representatives.
The Underwriters and their respective affiliates have from time to time performed, and may in the future perform, various financial advisory, commercial banking and investment banking services for the Partnership and its affiliates in the ordinary course of business for which they have received and would receive customary compensation. In addition, in the ordinary course of their various business activities, the Underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers, and such investments and securities activities may involve the Partnership's securities and/or instruments.
The foregoing description is not complete and is subject to and qualified in its entirety by reference to the full text of the Underwriting Agreement, which is filed as Exhibit 1.1 to this Current Report and is incorporated herein by reference.
Cautionary Statements
This Current Report includes "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Partnership's control. All statements included in this Current Report, other than historical facts, are forward-looking statements. All forward-looking statements speak only as of the date of this Current Report. Although the Partnership believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.
Risk Factors Related to the Acquisitions and the Equity Offering
We may not consummate the Acquisitions, and the sale of Common Units in the Equity Offering is not conditioned on the consummation of the Acquisitions.
We intend to fund a portion of the aggregate purchase price for the Acquisitions with the net proceeds of the Equity Offering. However, we may not consummate the Acquisitions, which are subject to the satisfaction of customary closing conditions. There can be no assurance that such conditions will be satisfied or that the Acquisitions will be consummated.
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The Equity Offering is not conditioned on the consummation of the Acquisitions. Therefore, upon the closing of the Equity Offering, you will become a holder of our Common Units regardless of whether the Acquisitions are consummated, delayed or terminated. If the Acquisitions are delayed or terminated, the price of our Common Units may decline.
If the Acquisitions are not consummated, our management will have broad discretion in the application of the net proceeds of the Equity Offering and could apply the net proceeds in ways that you or other unitholders may not approve. If this occurs, the price of our Common Units may be adversely affected.
If the Acquisitions are consummated, we may be unable to realize the associated anticipated cost savings, revenues or increase in distributable cash flow; as a result, we may be unable to pay increased per-unit distributions in connection with the proposed Acquisitions.
Our ability to realize the anticipated cost savings, revenues and expected
increase in distributable cash flow and our ability to pay increased per-unit
distributions in connection therewith, is dependent upon many different factors,
such as our ability to operate the
We will incur significant transaction and acquisition-related costs in connection with the Acquisitions.
We expect to incur significant costs associated with the Acquisitions and the integration of the assets from the Acquisitions into our existing portfolio of operating plants and terminals. The substantial majority of the expenses resulting from the Acquisitions will be composed of transaction costs, including professional fees, related to the Acquisitions and our integration efforts. Unanticipated costs may be incurred in the integration process. Although we expect that the elimination of duplicative costs, as well as the realization of other efficiencies related to the integration of the acquired assets with our assets, will allow us to offset incremental transaction- and acquisition-related costs over time, this net benefit may not be achieved in the near term, or at all.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Description 1.1 Underwriting Agreement, datedJune 3, 2021 , by and amongEnviva Partners, LP ,Enviva Partners GP, LLC andGoldman Sachs & Co. LLC andJ.P. Morgan Securities LLC , as representatives of the several underwriters named therein. 2.1 Contribution Agreement, datedJune 3, 2021 , by and amongEnviva Development Holdings, LLC ,Enviva, LP , andEnviva Holdings, LP . 5.1 Opinion ofVinson & Elkins L.L.P. , as to the validity of the Common Units. 8.1 Opinion ofVinson & Elkins L.L.P. regarding tax matters. 23.1 Consent ofVinson & Elkins L.L.P. (included in Exhibits 5.1 and 8.1). 99.1 Press release titled "Enviva Partners , LP Announces Public Offering of Common Units," datedJune 3, 2021 . 99.2 Press release titled "Enviva Partners , LP Prices Offering of Common Units," datedJune 3, 2021 . 99.3 Press release titled "Enviva Partners , LP Announces Accretive Drop-Down Transactions, Increases 2021 Guidance and Provides 2022 Guidance" datedJune 3, 2021 . 104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. 5
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