Hull Tricoya® plant funding update- Accsys Technologies PLC (AXS)
Funding agreed to deliver plant completion
Accsys, the fast-growing and eco-friendly company that combines chemistry and technology to create high performance, sustainable wood building products, today announces an update regarding the funding arrangements for the final stages of construction of the new Tricoya® plant in Hull, UK, by Tricoya UK Limited (‘TUK’), Accsys’ joint venture in relation to the Hull plant.
Following our 23 August 2021 update in respect of the Hull plant construction, we have agreed funding arrangements with our TUK consortium partners relating to the anticipated costs to complete the plant.
Under the arrangements:
· Accsys has entered into a new loan agreement with TUK under which Accsys will lend up to €17m to TUK to be used towards the Hull plant construction project alongside existing funding in place for TUK.
· The loan will accrue interest and be rolled up at a rate which is expected to be between 5.25 and 6.75% above EURIBOR. The loan is secured1 and is repayable by 30 September 20232
The supply and offtake agreements with consortia partners Medite (sale and purchase of Tricoya® wood elements) and INEOS (acetic anhydride supply) have been updated and reflect the partners’ ongoing commitment to the project.
The new funding and commercial arrangements enable the project to continue as previously reported. The Hull Tricoya® plant is expected to be commercially operational by July 2022 with anticipated total project capital costs of between €90m and €96m and targeted gross margins of 40% being achievable once at capacity, supported by on-going strong market demand.
Accsys will publish its interim results for first half of the 2022 financial year (the 6 months ended 30 September 2021) on 23 November 2021.
1. The loan is secured against the Hull plant assets, with security ranking behind that of the existing TUK senior debt facility with NatWest Bank PLC.
2. 30 September 2023 is six months after the redemption for the existing TUK senior debt facility.
For this and previous Accsys stock exchange releases click here.
Please note that Accsys will issue its interim results for H1 2022 on 23 November 2021.
Accsys Investor Relations