Repreve Renewables, LLC, announced it has secured a debt financing arrangement with CoBank and Carolina Farm Credit, through the Rural Infrastructure Opportunity Fund managed by Capitol Peak Asset Management. Repreve Renewables’ giant miscanthus is a perennial grass utilized as the feedstock for an array of industries, from poultry bedding to bioenergy and a host of other commercial applications. The funding will enable Repreve Renewables to accelerate the expansion of its operations in the U.S. to meet the growing demand for its giant miscanthus biomass.
“Capitol Peak is delighted to assist Repreve Renewables with this round of financing and is committed to helping the company continue to grow its business across the range of potential markets,” said Leo M. Tilman, Capitol Peak’s executive chairman. “This is a perfect example of the companies and projects we are focusing on in an effort to bring capital and economic growth-creating opportunities to rural America.”
The investment positions Repreve Renewables to further deliver on its vision of developing cost-effective, reliable and renewable solutions that provide customers with measurable value, while improving the environment for future generations. The funding will aid in expanding the Company’s proprietary suite of planting technologies, called the Accu Yield System, building a N.C.-based processing center, expanding the procurement of land leases, and growing sales and marketing to meet the increasing demand for giant miscanthus biomass in the poultry bedding and biopower markets, and beyond.
“A financial commitment from two leading agricultural lenders validates the value Repreve Renewables provides to our customers, and demonstrates their confidence in the biomass feedstock industry, specifically giant miscanthus,” said Jeff Wheeler, president and chief executive officer of Repreve Renewables. “This financing enables us to expand our operations and bring our products to more customers in the U.S., which in turn grows the rural economy.”
Giant miscanthus is a high-yielding, low-input perennial crop that is drought-tolerant and has minimal pests and diseases. Because it is capable of growing on marginal and underutilized land that may not be suited for most food crops, Repreve Renewables’ giant miscanthus provides landowners and growers with an alternate revenue stream, helping to support rural economic development and new markets in the agricultural segment.
“Innovation that drives the creation of new agricultural products and markets is critical to the continued success of America’s rural economy,” said Mary McBride, president of CoBank. “As a member of the Farm Credit System, we’re pleased to be supporting a business that has identified a significant market opportunity and that is focused on future growth and expansion.”
Vance C. Dalton, Jr., President and CEO of Carolina Farm Credit stated, "We are thrilled to support this expansion by Repreve Renewables. The expansion aligns with our mission to support agriculture and rural communities in North Carolina. Their innovation will fuel opportunities in agriculture and job creation in our state."
Currently, Repreve Renewables sells its Thrivez bedding product to the U.S. poultry market, consisting of 8.5 billion chickens and 253 million turkeys raised annually. The company is looking to expand its animal bedding line to other animal bedding segments in the U.S., such as the equine market. Additionally, Repreve Renewables is focusing its business development efforts on renewable energy. The Company was chosen to provide the agricultural and business development services for the University of Iowa's Biomass Fuel Project, which aims to reduce the use of fossil fuels by growing giant miscanthus for use as fuel in the University’s power plant.