CPE Media News (2/9/2019) – 5N Plus Inc. (TSX: VNP), a leading global producer of engineered materials and specialty chemicals, has secured a US $25 million unsecured subordinated term loan from Investissement Québec (IQ).
The loan has a five-year term and will be disbursed in two tranches: the first tranche of US$5 million on February 6, 2019, and the second tranche of US $20 million by no later than March 29, 2019. The loan will bear an interest equivalent to the 5-year US dollar swap rate plus a margin of 4.19% which as of today equates to approximately 6.80%.
Caisse de dépôt et placement du Québec (CDPQ), 5N Plus’ largest investor, currently holds 18.74% stake in the company.
photo credit: 5N Plus
News Release
5N Plus Announces New US$25 Million Unsecured Term Loan
Montreal, Québec, February 6, 2019 – 5N Plus Inc. (TSX:VNP) (“5N Plus” or the “Company”), a leading global producer of engineered materials and specialty chemicals, announced today the closing of a US$25 million unsecured subordinated term loan with Investissement Québec. Since the launch of its strategic plan 5N21, the Company has been delivering compelling results in line with the targets defined by the plan. During this time, 5N Plus has continued to undergo a transformation which is taking it from manufacturing and sales of specialty metals and chemicals to that of engineered materials, the result of which has been margin expansion and markedly improved return on capital employed.
As 5N Plus nears the half-way point of its strategic plan, it is expected that more emphasis will be placed on the development of its growth initiatives along with further investment in efficiency gains from its core businesses. To that end, it is expected that the proceeds from the unsecured term loan will be utilized to support these programs along with the repayment of the balance of the unsecured convertible debentures issued by the Company in 2014; which will mature on June 30, 2019. The new loan has a five-year term and will be disbursed in two tranches: the first tranche of US$5 million on February 6, 2019 and the second tranche of US$20 million by no later than March 29, 2019. The new term loan will bear an interest equivalent to the 5-year US dollar swap rate plus a margin of 4.19% which as of today equates to approximately 6.80%.
Richard Perron, Chief Financial Officer, commented “The new term loan and our recently renewed senior revolving credit facility constitute a well-balanced portfolio of financing for 5N Plus. With this backbone, our Company is ideally positioned to fund its future ambitions defined by 5N21 while addressing both flexibility and cost effectiveness.” Mr. Perron added “The new financing structure avoids dilution potential for our shareholders, mainly as it pertains to convertible debt instruments.” Mr. Perron concluded “As we continue to transform our Company and deliver tangible value, we are elated to have the support of Investissement Québec, an important institution in the local business community”.
About 5N Plus Inc.
5N Plus is a leading global producer of engineered materials and specialty chemicals with integrated recycling and refining assets to manage the sustainability of its business model. The Company is headquartered in Montreal, Québec, Canada and operates R&D, manufacturing and commercial centers in several locations in Europe, the Americas and Asia. 5N Plus deploys a range of proprietary and proven technologies to produce products which are used as enabling precursors by its customers in a number of advanced electronics, opto-electronics, pharmaceutical, health, renewable energy and industrial applications. Many of the materials produced by 5N Plus are critical for the functionality and performance of the products and systems produced by its customers, many of whom are leaders within their industry.
Contact:
Jean Mayer
Vice President, Legal Affairs
also in charge of investor relations
5N Plus Inc.
(514) 856-0644 x6178
invest@5nplus.com