Kramer Levin Advises Biosyl on Fundraising and Bank Financing for a New Production Site

Kramer Levin advised the Biosyl group in the context of a fundraising and contractualization of a senior debt intended to finance the construction of a new wood pellet manufacturing site in Auvergne, France.

This transaction resulted in a reinjection of cash by the group's investor and banking partners. An investor in Biosyl since 2019, the Omnes investment fund reinvested alongside Biosyl’s founder. The investor panel was rounded out by the investment funds 123 IM and Sofimac and the forestry cooperative Unisylva. On the debt side, Bpifrance and a banking pool arranged by BNP Paribas (La Banque Postale, HSBC, Banque Populaire Bourgogne and Banque Populaire Auvergne) contributed the senior debt.

Founded in 2010, Biosyl transforms wood waste and residue from sustainably managed forests into energy with low carbon dioxide emissions. Biosyl recycles wood from thinnings and sawmill waste into pellets for burning in domestic stoves and wood pellet boilers. The SME achieves gross sales of 18.5 million euros and produces 100,000 metric tons of pellets per year.

The fundraising will allow the group to double its production capacity while maintaining its short-circuit approach with the construction of a factory in a new geographical area.

A source of renewable energy, wood pellets have a low carbon footprint that is fully in line with the energy transition and the fight against climate change.