17 June 2022
5N Plus renews $124m syndicated credit facility
Specialty semiconductor and performance materials producer 5N Plus Inc of Montreal, Québec, Canada has announced the renewal of its US$124m senior secured multi-currency revolving syndicated credit facility. Subject to lenders’ approval, 5N Plus can opt to increase its credit facility to $154m through a $30m accordion feature.
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. Sectors addressed include renewable energy, security, space, pharmaceutical, medical imaging, and industrial and additive manufacturing.
“In late 2021, supported by our senior lending partners, we completed the acquisition of Germany-based AZUR SPACE GmbH [which develops and manufactures multi-junction solar cells based on III-V compound semiconductor materials], significantly strengthening our specialty semiconductor value chain and competitive capabilities in a critical sector, thereby also expanding our addressable market,” says chief financial officer Richard Perron. “5N Plus has a growing and resilient business with a greater proportion of revenues driven by value-added products and promising end markets,” he adds. “We are pleased to have the continued support of leading financial institutions to fund our operations and growth initiatives as we pursue our growth trajectory.”
The new credit facility has a four-year term, bearing interest and a margin based on the firm’s senior consolidated debt-to-EBITDA ratio. HSBC Bank Canada acted as sole lead arranger, sole bookrunner and administrative agent for the syndicate of five lenders participating in the credit facility.