15 Dec 2014 07:00
15 December 2014
Hydrodec Group plc
("Hydrodec" or the "Company")
US$10 million loan facility to finance US operations
Hydrodec Group plc (AIM: HYR), the cleantech industrial oil re-refining group, is pleased to announce that its subsidiary, Hydrodec of North America LLC (HoNA), has signed a US$ 10 million, seven year term, asset financing facility, and increased its working capital line of credit to US$ 1.5 million.
These facilities will ensure that Hydrodec's North American business is appropriately funded following the rebuild and expansion of the Canton re-refinery. The facilities are secured by a charge over all of the assets of HoNA. Initially, HoNA will deposit US$ 1.5 million as cash collateral against the facilities for the first 12 months of trading following the rebuild of the Canton re-refinery.
Commenting on the facilities, Ian Smale, Chief Executive Officer of Hydrodec said: "By entering into these facilities, we reinforce the strength and flexibility of the Group balance sheet, and once drawn down will return Hydrodec Group's cash position to similar levels to those following the fundraising in November 2013. The facilities create a more efficient capital structure for HoNA providing further working capital for investment in feedstock and other opportunities."
Ian Smale added: "After the incident at Canton in December 2013, the management committed to shareholders and staff that we would re-emerge stronger as a company. This financing completes a year of progress in the US, UK and Australia to return Hydrodec to its original growth path."
A short interview with Ian Smale, Chief Executive, will be uploaded on the Hydrodec Group website later today.
For further information please contact:
Hydrodec Group plc |
| 020 7907 9220 |
Ian Smale, Chief Executive Chris Ellis, Chief Financial Officer James Hodges, General Counsel and Company Secretary
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Peel Hunt LLP (Nominated Adviser and Broker) |
| 020 7418 8900 |
Justin Jones Mike Bell
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Vigo Communications (PR adviser to Hydrodec) |
| 020 7016 9570 |
Patrick d'Ancona Chris McMahon |
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Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil re-refining and chemical process initially targeted at the multi-billion US$ market for transformer oil used by the world's electricity industry. Spent oil is currently processed at two commercial plants with distinct competitive advantage delivered through very high recoveries (near 100%), producing 'as new' high quality oils at competitive cost and without environmentally harmful emissions. The process also completely eliminates PCBs, a toxic additive banned under international regulations. Hydrodec's plants are located at Canton, Ohio, US and Young, New South Wales, Australia. Hydrodec recently acquired the business and assets of OSS Group, the UK's largest collector, consolidator and processor of used lubricant oil and seller of processed fuel oil, with a national network of oil storage and transfer stations, currently serviced by a fleet of more than 90 trucks which collect used oil and other garage workshop waste from over 30,000 customers. Used oil is converted into processed fuel oil at OSS's plant at Stourport and principally sold on to the UK quarry and power industry.
Hydrodec's shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.