Specialty metal and chemical products firm 5N Plus Inc of Montreal, Québec, Canada has signed a new US$125m senior secured multi-currency revolving syndicated credit facility that will replace its existing US$100m senior secured revolving facility. HSBC Bank acted as lead arranger and book runner, and the syndicate of lenders (led by HSBC Bank as administrative agent) comprises six other banks and financial institutions.
5N Plus provides specialty purified metals such as bismuth, gallium, germanium, indium, antimony, cadmium, selenium and tellurium, and also produces related 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. The firm also has fully integrated closed-loop recycling facilities.
The new credit facility is more correlated with the firm’s balance sheet and will be used to refinance existing indebtedness and for other corporate purposes, including capital expenditures and growth opportunities.
The new credit facility is on a revolving basis, has a four-year term, and carries interest at either prime rate, US base rate, HK base rate or Libor plus a margin based on 5N Plus’ senior consolidated debt-to-EBITDA ratio.At any time, 5N Plus has the option to request that the new facility is expanded to US$150m through the exercise of an additional US$25m accordion feature, subject to review and approval by the lenders.
“This credit facility provides the company with an expanded and flexible credit line, at lower rates than the current credit facility,” says chief financial officer Richard Perron. “We are very happy to have the support of leading Canadian and international financial institutions towards funding our operations and growth initiatives.”
