Timminco: Debt Financing
Timminco Limited announced 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.
About Investissement Quebec and the Renfort Program
Investissement Quebec's mission is to promote the growth of investment in Quebec and thereby contribute to economic development and job creation. The Renfort program was launched in December 2008 by Quebec's Ministry of Economic Development, Innovation and Export Trade (MEDIET) as a working capital and investment program designed to stabilize successful companies experiencing temporary difficulties because of the economic situation. This program has $1.2 billion in funding and offers loans and loan guarantees to companies in operation for at least three years that carry out their main activities in Quebec.
Timminco produces solar grade silicon for the solar photovoltaic energy industry. Using its proprietary, patent pending technology, Timminco purifies silicon metal into solar grade silicon (also known as upgraded metallurgical silicon) for use in the manufacture of solar cells. Timminco also produces silicon metal, magnesium extrusions and other specialty metals for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.
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