Altech Receives Loan Indicative Terms and Conditions
Perth, Aug 24, 2016 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (
ASX:ATC) is pleased to announce that the Company has received a summary of senior facility agreement indicative terms and conditions from German government-owned KfW IPEX-Bank for the proposed US$70 million of debt financing of its Malaysian high purity alumina (HPA) project.
Highlights:
- Altech receives lenders first draft indicative term sheet
- Altech targeting total project debt of US$70 million
- Export credit cover (ECA) component of US$60 million
- Sole lender structure proposed for the entire debt portion of up to US$70 million
- Simplified debt financing and attractive ECA-covered component
The indicative terms and conditions proposed by KfW IPEX-Bank includes matters customary for the type of project debt financing being targeted, such as a description of credit facilities; interest rates and fees; debt payment terms and maturity dates; collateral security; affirmative and negative covenants; details of guarantors; closing conditions; financial covenants; representations and warranties; events of default and material adverse changes. The details for these matters and potential adjustments are currently under discussion and will take into account the results from the ongoing due diligence process where necessary, before being submitted for approval within the German export credit agency and KfW IPEX-Bank.
As previously announced, KfW IPEX-Bank has proposed a simple and cost effective "sole lender" debt structure whereby the entire US$70 million of project debt is contemplated being provided exclusively by KfW IPEX-Bank (subject to ongoing due diligence and respective loan approval).
Altech and KfW IPEX-Bank have now commenced detailed discussions and negotiations of the proposed facility agreement terms and conditions, which are not binding on either party. Finalised terms and conditions, once agreed, will form the basis for the preparation of binding loan facility documentation.
On 3 August 2016, the Company announced a positive pre-assessment by the German Government interministerial committee (IMC) and Euler Hermes, of Altech's export credit project finance application (refer ASX Announcement dated 3 August 2016 for details).
On 10 August 2016, due diligence (DD) consultants were appointed to undertake the definitive technical, market and legal review of the project on behalf of the proposed financier, Germany's government-owned KfW IPEXBank, and by the German export credit agency Euler Hermes.
On 17 August 2016, the Company announced an increased target total debt of US$70 million (previously US$60 million), with the export credit cover portion to be covered by the German export credit agency (ECA) Euler Hermes Aktiengesellschaft (Euler Hermes), increased from US$40 million to US$60 million.
Altech managing director Mr Iggy Tan said, "The debt financing is progressing well and the senior facility agreement indicative terms and conditions presented by KfW IPEX-Bank is the next important step towards securing finance. The debt and ECA cover is still subject to due diligence and various loan approval steps, however receiving the indicative terms and conditions whilst a positive outcome but does not imply that the ECA or debt financing applications will be successful" he concluded.
About Altech Batteries Ltd
Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.
The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.
| ||
|
