MONTREAL, QUÉBEC--(Marketwired - Nov. 5, 2015) - Orbite Technologies Inc. (TSX:ORT)(OTCQX:EORBF) ("Orbite" or the "Company") is pleased to announce it has completed a secured debt financing (the "Facility") totalling up to C$22 million (or US$16.95 million) in the aggregate.
The Facility is comprised of a US$6.5 million (C$8.5 million) revolving credit facility, term loan A (US$0.45 million, or C$0.6 million) and term loan B (US$10.0 million, or C$13.0 million) - all with MidCap Financial ("MidCap").
The credit facility and term loans with MidCap will bear interest at the London Interbank Offered Rate (or Libor) rate, which shall be no less than 0.5% (currently 0.2%), plus 6.5%.
"Having successfully commenced commissioning of sections of our HPA plant, we have now secured the remaining funds required for completion and full commissioning of the facility, and to cover our working capital requirements beyond the start of commercial production, expected in the fourth quarter of this year," stated Glenn Kelly, CEO of Orbite.
Claude Lamoureux, Chairman of the Board of Orbite, commented, "We believe this new financing arrangement reflects the considerable progress Orbite has made this past year. Fully in line with our Board objectives, Glenn and the entire team at Orbite have worked diligently and successfully towards the pursuit of non-dilutive financing and the creation of shareholder value by advancing the Company towards a position in which commercial production is anticipated imminently. This was key in securing this new and competitive financing arrangement."
Mr. Kelly continued, "As I mentioned on a number of occasions, our progress towards commercialization has resulted in a production asset of considerable value. Combined with our Investment Tax Credits, we were able to collateralize these into securing financing on terms much more favourable than had been possible previously."
A portion of the revolving credit facility and term loan A will be repayable as the Investment Tax Credits ("ITC") payments for the 2014 financial year are received by the Company, while the term loan B principal is repayable in 36 equal monthly installments starting on December 1, 2016. The balance of the revolving credit facility will be used to finance the Company's eligible receivables. The Facility is subject to certain reporting, financial and other customary conditions, which will be accessible within the next few days on www.sedar.com under the Company's filings. The Facility is secured by a 1st ranking hypothec on the universality of the Company's present and future movable and immovable assets, excluding the ITC receivables for the 2015 financial year, which are currently being financed by Investissement Québec ("IQ"). The Facility shall expire no later than November 4, 2019.
Part of the proceeds from the Facility will be used to repay the C$3.03 million bridge loan contracted with IQ to finance the Company's 2014 ITC.
Additionally, the Company is pleased to announce that IQ has agreed to increase the amount of its second secured bridge loan, initially granted in June 2015 in the amount of C$5 million, to C$7.6 million. This loan is collateralized against the Company's ITC receivables for the 2015 and subsequent financial years, and is repayable upon receipt by the Company of ITC payments for the 2015 financial year from tax authorities, but in no event later than June 30, 2017. Other terms for the loan with IQ remain unchanged, with interest payable at prime (presently 2.7%) plus 3.5%.
Mr. Kelly concluded, "We would like to thank Investissement Québec for their continued commitment to the Company and their support in helping us advance our business plan."
About MidCap Financial
MidCap Financial is a middle market-focused, specialty finance firm that provides senior debt solutions to businesses across all industries. The firm's years of experience, strong balance sheet, and flexibility make it a lender of choice for companies across all stages of growth and complexity. MidCap Financial's debt solutions focus in five areas:
- General and Healthcare Asset-Based working capital loans collateralized by third-party accounts receivable and other assets;
- Leveraged loans to companies backed by private equity sponsors;
- Life Sciences loans to VC-backed and public pharmaceutical, biotech, and medical device companies;
- Real Estate loans on commercial properties, skilled nursing facilities, senior housing properties, and medical office buildings; and
- Lender Finance term loans or revolvers provided across the consumer and commercial finance sectors.
Additional information about MidCap Financial can be found at www.midcapfinancial.com.
MidCap Financial refers to MidCap FinCo Limited, a private limited company domiciled in Ireland, and its subsidiaries. MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, pursuant to an investment management agreement between Apollo Capital Management, L.P. and MidCap FinCo Limited. References to MidCap Financial prior to January 2015 are to its predecessor, MidCap Financial, LLC.
Orbite Technologies Inc. is a Canadian cleantech company whose innovative and proprietary processes are expected to produce alumina and other high-value products, such as rare earth and rare metal oxides, at one of the lowest costs in the industry, and in a sustainable fashion, using feedstocks that include aluminous clay, kaolin, nepheline, bauxite, red mud, fly ash as well as serpentine residues from chrysotile processing sites. Orbite is currently in the process of finalizing its first commercial high-purity alumina (HPA) production plant in Cap-Chat, Québec and has completed the basic engineering for a proposed smelter-grade alumina (SGA) production plant, which would use clay mined from its Grande-Vallee deposit. The Company's portfolio contains 15 intellectual property families, including 21 patents and 103 pending patent applications in 11 different countries and regions. The first intellectual property family is patented in Canada, USA, Australia, China, Japan and Russia. The Company also operates a state of the art technology development center in Laval, Québec, where its technologies are developed and validated.