Debt Refinancing Signed

RNS Number : 6416Z

Iofina PLC

22 September 2020

 

22 September 2020

Iofina Plc

("Iofina", the "Company" or the "Group")

(LSE AIM: IOF)

Debt Refinancing Signed

Iofina, specialists in the exploration and production of iodine and manufacturers of specialty chemical products, is pleased to announce that it has signed binding documentation to refinance its entire debt by entering into a new loan agreement (the "Facility") with First Financial Bank, (NASDAQ: FFBC), a Cincinnati-headquartered, US regional bank ("First Financial"). The Facility provides Iofina with debt capital of up to US$18m, with the proceeds to be used to pay off existing debt and to provide working capital for the Group. A total amount of $13m was available and drawn on closing of this arrangement. 

The Facility comprises two parts:

· A 7-year term loan for US$10m at a variable annual interest rate of 2.5% plus LIBOR (with a LIBOR minimum 1%), adjusted monthly.  The term loan is fully amortizing over the term with equal monthly principal payments.

o  Iofina and First Financial Bank also simultaneously entered into an interest rate swap transaction to fix the interest rate at 3.99% throughout the 7-year term of US$7m in principal of the US$10m term loan.

· A 2-year asset based revolving line of credit for up to US$8m, of which $3m was available and drawn at closing. The Group expects to increase its utilisation of this facility subject to ongoing borrowing base calculations and compliance with covenant ratios as defined in the Facility. It carries a variable annual interest rate of 2.25% plus LIBOR (with a LIBOR minimum of 1%), adjusted monthly.

The Facility will be fully secured against the assets of the Group.  The Facility contains customary financial covenants as well as affirmative and negative covenants usual for transactions of this type, including limitations with respect to indebtedness, liens, investments and disposition of assets.  Additionally, if the Group generates excess cash flow in 2021 or 2022, as detailed in the Facility, Iofina is required to use 25% of such excess cash flow to prepay the term loan, with such prepayments due 30 June 2022 and 2023. These agreements will be in full effect once the funds, which have been wired, are received by the current debt holders.

Iofina were advised and supported by finnCap Debt Advisory on this transaction.

Commenting, President and CEO of Iofina Dr. Tom Becker, stated: "The conclusion of the debt refinancing is a significant and positive step for Iofina and is the culmination of many months of hard work. The favourable terms of this refinance demonstrate how far Iofina has progressed in recent years, given that the Company has significantly reduced debt, lowered debt interest rates, and secured a strong lending bank partner. With the Company's balance sheet significantly strengthened by the 7-year term loan in place coupled with the revolving line of credit for future growth, Iofina is focused on operational developments and expanding its production and chemicals product portfolio."

Enquiries:

Dr. Tom Becker

CEO & President

Iofina plc

Tel: [phone]

Christopher Raggett/Giles Rolls/Matthew Radley (corporate finance)

Tim Redfern (ECM)

Graham Cooke / Alistair Hay / Krishan Raval (Debt Advisory)

finnCap Ltd

Tel: [phone]

Media Contact:

Charles Goodwin/Joe Burgess

Yellow Jersey PR Limited

Tel: [phone]

About Iofina:

Iofina plc (AIM: IOF) is a vertically integrated Company that specialises in the production of Iodine and the manufacturing of specialty chemical products. As the second largest producer of iodine in North America, it comprises three USA entities; Iofina Resources, Iofina Chemical and IofinaEX.

LEI: 213800QDMFYVRJYYTQ84

ISIN: GB00B2QL5C79

Iofina Resources

Iofina Resources develops, builds, owns and operates iodine extraction plants using Iofina's WET® IOsorb® technology. Iofina currently operates five producing IOsorb® plants in Oklahoma and is consistently using technology and innovation to improve and expand its operations.

Iofina Chemical

Iofina Chemical has manufactured high quality halogen speciality chemicals derived from raw iodine, as well as non-iodine based products for over 35 years.

IofinaEX

Iofina's newest subsidiary, IofinaEX, is fully licensed to process hemp in the state of Kentucky and is exploring the isolation of specialty chemical products from hemp, a rapidly expanding market.

www.iofina.com

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

10258113.1

 

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