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Orbite Closes C$22MM Debt Facility With MidCap Financial

November 06, 2015, 06:57 AM
Filed Under: Specialty Industries

Orbite Technologies Inc. has completed a secured debt financing totalling up to C$22 million (or US$16.95 million) in the aggregate. The facility is comprised of a U.S.$6.5 million (C$8.5 million) revolving credit facility, term loan A (U.S.$0.45 million, or C$0.6 million) and term loan B (U.S.$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.

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 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 Quebec ("IQ"). The Facility shall expire no later than November 4, 2019.

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.

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