5N Plus closed a $79 million senior secured multi-currency revolving syndicated credit facility to replace its existing $50 million revolver. HSBC Bank acted as lead arranger and book runner on the transaction.
The new facility has a four-year term, bearing interest and a margin based on 5N Plus’ senior consolidated debt to EBITDA ratio. Subject to lenders’ approval, 5N Plus can exercise its option to request an expansion of the credit facility through a $30 million accordion feature which would increase the total size of the facility to $109 million.
5N expects to use the facility to finance growth initiatives related to the second and third pillar of the company’s strategic plan 5N21.
“Our strategic plan, 5N21, fosters a new business model which is transforming 5N Plus as evident by the significant improvement in profitability, substantial enhancement in return on capital employed, reduction in earnings volatility, recurrent cash flows and a solid balance sheet,” said Richard Perron, 5N Plus CFO. “We are very happy to have the support of leading financial institutions as we continue to execute our strategic plan.”
Headquartered in Montreal, 5N Plus is a producer of engineered materials including purified metals, inorganic chemicals based on such metals and compound semiconductor wafers.
