Westport Fuel Systems closed a $10 million term credit facility from Export Development Canada (EDC) to bolster liquidity during the COVID-19 pandemic.
The credit facility from EDC will enable Westport Fuel Systems to make periodic requests for advances for a period of nine months from the date of the amended and restated loan agreement and has a final maturity date 12 months from the date of the agreement. The facility’s interest rate is US Prime plus 3% per annum on drawn amounts and has no prepayment penalty or standby charge. On March 25, 2020, Westport Fuel Systems, in partnership with EDC, amended the existing term loan to defer 2020 principal payments of $6 million and to extend the loan until Sept. 30, 2022.
“These transactions confirm the continued strong support of Export Development Canada and their unwavering commitment to Canada’s clean-technology exporters,” David M. Johnson, CEO of Westport Fuel Systems, said. “As our global operations ramp up production, this facility provides additional liquidity, if required. We are grateful for our long-standing partnership with EDC and the speed at which they have mobilized to help Canadian companies weather the market headwinds introduced by COVID-19.”
“EDC is proud to have supported Westport Fuel Systems’ innovation and international growth through our cleantech program for more than two years,” Dan Mancuso, senior vice president of financing and investments for EDC, said. “EDC is focused on helping all Canadian businesses navigate the challenges of the COVID-19 pandemic and providing this facility to Westport Fuel Systems supports one of Canada’s most innovative cleantech companies.”
EDC is a financial Crown corporation that supports Canadian companies with trade knowledge, financing solutions, equity, insurance and connections.
Westport Fuel Systems is a supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane and hydrogen to the global automotive industry.
