News: Suppliers
24 March 2021
5N Plus renews $79m syndicated credit facility
Engineered materials and specialty chemicals producer 5N Plus Inc of Montreal, Québec, Canada has renewed its US$79m senior secured multi-currency, revolving and syndicated credit facility. The agreement includes a contingent option to expand the facility to US$124m.
The renewed credit facility has a two-year term, bearing interest and a margin based on the company’s senior consolidated debt-to-EBITDA ratio. In addition to its contingent option, 5N Plus can exercise a $30m accordion feature to increase the total size of the facility to $154m, subject to lender approval. The syndicate consists of five banks and financial institutions, with HSBC Bank assuming the role of lead arranger and book runner.
5N Plus provides purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, and also produces related II-VI semiconducting compounds such as cadmium telluride (CdTe), cadmium sulphide (CdS) and indium antimonide (InSb) as precursors for the growth of crystals for solar, LED and eco-friendly materials applications.
“We are pleased to have the support of leading financial institutions as we continue to execute our strategic transformation toward deepening our position as a global material technology company,” says chief financial officer Richard Perron. “We continue to make significant progress along this path and have been consequently rewarded with enhanced return on capital employed, recurrent cash flows and a solid balance sheet.”
5N Plus says that it continues to remain competitive through its sustainably optimized cost structure, selection of promising growth initiatives and portfolio of customers that continue to be essential for the company’s transformation. The capital made available through its credit facility and associated contingent and accordion options are expected to finance both organic and inorganic growth initiatives.
“We continue to focus on accelerating our long-term growth story and will look beyond our current organic initiatives to support this trajectory,” says Perron. “The additional flexibility to our credit facility will be a notable asset in realizing these ambitions.”
5N Plus secures multi-year supply contracts with First Solar
