Proceeds from the BDC Financing will be used for the development and construction of the Company’s planned asphalt shingle reprocessing facility in Calgary, Alberta.
VANCOUVER — Northstar Clean Technologies Inc. announces that it has entered into a term sheet with the Business Development Bank of Canada for project financing of up to C$8.75 million in non-revolving senior secured debt. Proceeds from the BDC Financing will be used for the development and construction of the Company’s planned asphalt shingle reprocessing facility in Calgary, Alberta.
The following is a summary of the material terms of the Term Sheet:
- BDC will provide a secured loan of up to C$8.75 million;
- 15-year repayment period, with the potential for a 2-year interest only payment period;
- Fixed 5-year interest rate of 8.0% payable monthly, with the possibility of rate reduction after 1 year of successful plant operation; and
- The Company shall be required to repay all or a portion of the debt, as applicable, upon the occurrence of certain future prepayment events.
The terms noted above are subject to change at the time of authorization.
The term sheet is non-binding with no guarantee that closing will occur. The progression of the Term Sheet to binding loan documentation is subject to due diligence, satisfaction of customary loan conditions, and is progressing in line with Northstar and BDC’s agreed timeline. The BDC Financing is subject to a one-time fee of C$43,750 and an annual fee of C$1,000.
Mr. Aidan Mills, President & CEO and Director of Northstar, stated “We continue to execute on our strategy for the funding of the Empower Calgary Facility, with the objective of minimizing shareholder dilution. Combined with the Emissions Reduction Alberta government grant award of C$7.1 million, the BDC Financing of C$8.75 million would bring nearly C$16 million in non-dilutive funding for the Empower Calgary Facility. We are excited to have entered this Term Sheet with BDC, a leading, reputable, and potential long term strategic partner for Northstar and its Empower Calgary Facility. This represents a further significant step in the Company’s quest to deliver a facility capable of diverting 40,000 tonnes of asphalt shingles per year away from Calgary landfills and into the circular economy.”
Reposted from https://www.canadianmanufacturing.com/manufacturing/northstar-announces-execution-of-term-sheet-for-8-75m-in-debt-with-bdc-292420/
