Timminco Limited announced today that the Quebec government has authorized Investissement Quebec to negotiate the terms and conditions of a proposed debt financing for Becancour Silicon Inc., a wholly-owned subsidiary of Timminco, by way of a two-year term loan of up to $25.0 million. This loan would be provided by Investissement Quebec under the Renfort program and disbursed in full upon completion of the transaction. The funds would be used for general working capital purposes.
"We are pleased with the Quebec government's decision in favour of this potential investment in our company," said Mr. Rene Boisvert, President and CEO of Becancour Silicon. "Becancour Silicon has been a proud member of the Becancour community for 35 years. In addition to the strong potential for our historical silicon metal business, our proprietary process for producing solar grade silicon provides us with a significant opportunity in the solar energy industry. These funds would help position us to capitalize upon opportunities as our customer demand recovers."
"The loan attributed today will help a key player in Quebec's industry, Becancour Silicon, get through the worldwide economic storm" declared Quebec's Minister of Economic Development, Innovation and Export Trade, Mr. Clement Gignac.
"This announcement is an eloquent example of the Quebec government's commitment towards Quebec businesses. I am very proud of it" added Quebec's Minister of Transport, Mrs. Julie Boulet.
The proposed loan would be interest-bearing and include certain financial and other covenants. It would also be secured by Becancour Silicon's assets and subordinated to the existing revolving credit facilities provided by Timminco's senior secured lender, Bank of America, N.A. The transaction is subject to execution of definitive documents and satisfaction of other conditions, including consent of Timminco's other secured lenders.
No comments:
Post a Comment