Northstar Clean Technologies entered into a binding, definitive credit agreement with the Business Development Bank of Canada (BDC) for project financing of up to C$8.75 million ($6.58 million) in non-revolving senior secured debt. The company intends to use the proceeds from the BDC Financing for the development and construction of its planned asphalt shingle reprocessing facility in Calgary, Alberta (Empower Calgary Facility).
The following is a summary of the material terms of the credit agreement.
- BDC will provide a senior secured loan of up to C$8.75 million ($6.58 million);
- 15-year repayment period, with a two-year interest only payment period;
- Fixed five-year interest rate of 8.35% payable monthly.
The BDC Financing is subject to a one-time fee of C$43,750 ($32,925), which has already been paid by Northstar, and an annual fee of C$1,000 ($752).
“Over the last year, we have engaged with numerous potential investors in our effort to finance the construction of the Empower Calgary Facility and I am happy to say that we have now secured our ideal long-term financing partner in BDC,” Aidan Mills, president, CEO and director of Northstar, said. “The terms of this debt financing are very favourable – 15-year term, low interest rate, re-financing potential, and minimal closing and due diligence fees. We believe this funding and securing BDC as a partner going forward adds significant value to Northstar and our shareholders.”