MONTREAL, April 24, 2018 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) ("5N Plus" or the "Company"), a leading producer of engineered materials, announces the closing of a US$79 million senior secured multi-currency revolving syndicated credit facility to replace its existing US$50 million revolving facility. Addressing current financing and other corporate purposes, the new credit facility is also expected to be used to finance growth initiatives related to the second and third pillar of the Company's strategic plan 5N21. The new credit facility has a four-year term, bearing interest and a margin based on 5N Plus' senior consolidated debt to EBITDA ratio. Subject to lenders' approval, 5N Plus can exercise its option to request an expansion of the credit facility through a US$30 million accordion feature which would increase the total size of the facility to US$109 million. The syndicate is comprised of six banks and financial institutions with HSBC Bank assuming the role of lead arranger and book runner.
Richard Perron, Chief Financial Officer, commented "Our strategic plan, 5N21, fosters a new business model which is transforming 5N Plus as evident by the significant improvement in profitability, substantial enhancement in return on capital employed, reduction in earnings volatility, recurrent cash flows and a solid balance sheet." Mr. Perron added "Over the past two years we have utilized selectivity as the tenet of our approach to address market opportunities, consolidate assets across the globe, optimize global supply chain and address investment requirements of our business". Mr. Perron concluded "We are now shifting our focus toward growth initiatives and find a combination of a solid balance sheet along with the conclusion of this new expanded and flexible credit facility timely, to efficiently support and deliver growth in-line with our ambitions. We are very happy to have the support of the leading financial institutions as we continue to execute our strategic plan."
About 5N Plus Inc.
5N Plus is a leading producer of engineered materials. Fully integrated with closed-loop recycling facilities, the Company is headquartered in Montreal, Québec, Canada and operates manufacturing facilities and sales offices 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 in a number of advanced pharmaceutical, electronic and industrial applications. Typical products include purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, inorganic chemicals based on such metals and compound semiconductor wafers. Many of these are critical precursors and key enablers in markets such as pharmaceutical, healthcare, renewable energy, aerospace, security and sensing, imaging, technical and industrial materials, extractive and catalytic materials, and animal feed additive industries.
Forward-Looking Statements and Disclaimer
This press release may contain forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by words such as "about", "approximately", "may", "believes", "expects", "will", "intends", "should", "plans", "predicts", "potential", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof or other comparable terminology. Forward-looking statements are based on the best estimates available to 5N Plus at this time and involve known and unknown risks, uncertainties and other factors that may cause 5N Plus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting 5N Plus' business and activities appears under the heading "Risk and Uncertainties" of 5N Plus' 2017 MD&A dated February 20, 2018 available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that 5N Plus will derive therefrom. In particular, no assurance can be given as to the future financial performance of 5N Plus. The forward-looking information contained in this press release is made as of the date hereof and 5N Plus undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward-looking statements.
SOURCE 5N Plus Inc.
For further information: Jean Mayer, Vice President, Legal Affairs, also in charge of investor relations, 5N Plus Inc., (514) 856-0644 x6178, [email protected]