Daily News: August 22, 2012

FGI Amends Clean Diesel Demand Credit Facility


Clean Diesel Technologies (CDTi), a cleantech emissions control company, announced it has amended the terms of the secured demand credit facility among CDTi, certain of its subsidiaries, and Faunus Group International (FGI).

As amended, the inventory borrowing sublimit under the FGI facility is increased from $1 million to the lesser of (i) $2 million and (ii) 50% of the aggregate purchase price paid by FGI for accounts under the FGI facility; the term of the facility is extended to August 15, 2015; and the interest rate on advances or borrowings is lowered by 100 basis points to the greater of (i) 6.50% per annum and (ii) 2.50% per annum above the prime rate.

CDTi said the lower interest rate, combined with reduced monthly collateral management and service fees, will result in a reduction in total borrowing costs in excess of 2% per annum.