US$60 Million Stream Finance Term Sheet Signed
US$60 Million Stream Finance Term Sheet Signed
Perth, June 15, 2018 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (ASX:ATC) (FRA:A3Y) is pleased to announce that it has signed an indicative non-binding term sheet for a US$ 60 million stream finance facility for its proposed high purity alumina (HPA) project (the Project), from a US based global alternative investment group.

Highlights

- US$60 million stream finance term sheet executed

- Structured alternate financing option

- Works in conjunction with off-take sales arrangement

- Global investment firm with US$ 4.5b under management

A stream finance facility is a structured alternative financing product whereby the facility provider agrees to advance a facility amount in exchange for a percentage of future gross sales. The facility term sheet that Altech has received contemplates a US$ 60 million advance, with funds able to be applied to the development, construction and working capital requirements of the Project. The facility will be structured to operate in conjunction with Altech's 10-year off-take sales arrangement with Mitsubishi Australia and for repayment over the life of the Project. The term sheet remains subject to additional due diligence, the agreement of binding terms and to various bank, regulatory and board approvals. The facility will also need to be acceptable to the senior debt provider (KfW IPEX-Bank) and any mezzanine debt provider. As is customary with these types of transactions, the terms remain confidential at this point in time.

Project Finance Status

On 2 February 2018 the Company announced that it had executed commitment and final terms for a US$ 190 million senior debt package with German government-owned KfW IPEX-Bank (see Note below). On 11 May 2018, the Company received an indicative non-binding mezzanine debt term sheet from a global investment bank equal to US$ 90 million. Combining the streaming facility with senior debt and mezzanine debt would provide total project finance of US $340 million, which the Company is considering, as summarised in Table 1 (see link below).

Altech managing director Iggy Tan said, "The Company is extremely pleased with the interest that is being shown from a variety of financiers in our HPA project, as is demonstrated by the term sheets received to date. We remain committed to pursuing an optimal financing structure for the Project, and will continue to keep shareholders informed of developments".

Note: Draw-down on the senior KfW IPEX-Bank debt is subject to the satisfaction of various conditions precedent, principal of which is securing a balance of funds - refer ASX announcement of 2 February 2018.

To view tables, please visit:
http://abnnewswire.net/lnk/4M05WB0Q


About Altech Chemicals Ltd

Altech Chemical Ltd ASX:ATCAltech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.

Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.

    


Contact

Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: +61-8-6168-1555
Email: info@altechchemicals.com

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: +61-8-6168-1555
Email: info@altechchemicals.com

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: +49-69-175-548320
Email: hoffmann@soarfinancial.com



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