Business
Neo Secures $75 Million Loan to Finance Expansion and Relocation of its Environmental Emissions Catalyst Business
Neo Secures $75 Million Loan to Finance Expansion and Relocation of its Environmental Emi...
About this update from Neo Performance Materials, Inc.
[{"type":"text","content":"\n \n \n \n Neo Secures $75 Million Loan to Finance Expansion and Relocation of its Environmental Emissions Catalyst Business\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n Export Development Canada Credit Facility Funds NAMCO Project and Frees Up Capital For Other Growth Strategies\n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n Aug. 17, 2022\n \n \n /CNW/ - Neo Performance Materials Inc. (\"\n \n Neo\n \n \", the \"\n \n Company\n \n \") (TSX: NEO) is pleased to announce that the Company has entered into a loan agreement (the \"\n \n Loan Agreement\n \n \") with Export Development Canada (\"\n \n EDC\n \n \") for a term loan of up to\n \n US$75 million\n \n (the \"\n \n Credit Facility\n \n \"), to be advanced in three tranches of\n \n US$25 million\n \n , to finance the relocation, expansion, and sustainability upgrades to one of its environmental emissions catalyst manufacturing facilities.\n \n \n \n \n \n \n \n \n \n The Credit Facility matures five years from the date hereof, with principal repayment beginning in two years from the date hereof.  The outstanding principal amount carries an interest rate equal to the secured overnight financing rate, as administered by the Federal Reserve Bank of\n \n New York\n \n , plus an applicable margin.  A number of the Company's subsidiaries provided a guarantee and/or security in favour of EDC pursuant to the Loan Agreement.\n \n \n Prior to drawing each of the three tranches, the Loan Agreement requires certain conditions to be fulfilled including maintenance of cost performance relative to budget, disclosures related to environmental and social law compliance, and other certifications from management and third-party environmental monitoring consultants.\n \n \n The Credit Facility will fund anticipated costs of relocating one of Neo's two plants that produce environmental emissions catalysts.  Demand for Neo's rare-earth-based, environmental emissions catalysts, used primarily to reduce harmful air emissions in vehicle exhaust sy...