Jun 11 2008
Vimetco N.V., the global producer of primary and processed aluminium products, today announces that it has entered into a shareholder loan for up to USD 250,000,000 with its controlling shareholder, Vi Holding N.V., as lender.
The shareholder loan will support the financing of potential projects enhancing the vertical integration strategy as well as the substantial expansion programme in China. This expansion will result in a 90% increase in production capacity and will enable the company to produce higher margin, value-added aluminium products at new state of the art facilities to be constructed within the next 10 months (as announced by Vimetco on 29 April 2008).
Vimetco has entered into the loan with Vi Holding N.V. on arms’ length terms. The loan is repayable by Vimetco on May 31, 2013 or before that date voluntarily from time to time.
Vi Holding N.V. is financing the Shareholder Loan through a third party loan secured on its 51% shareholding in the Company.
Vi Holding N.V. has entered into a USD 250,000,000 loan facility with UniCredit Group (Bank Austria) and Erste Group (Erste Bank der oesterreichischen Sparkassen AG), as lead arrangers to finance the Shareholder Loan. Vi Holding N.V. has pledged, in support of its borrowings, 51% of its holding in the Company in favour of the lenders. Vi Holding N.V. has also agreed pursuant to the loan facility not to encumber or dispose of an additional 6.5% of its holding in the Company and has agreed to grant the lenders certain drag-along and call-option rights with respect to all additional shares that are registered in the name of Vi Holding N.V. in the event that the lenders enforce against the pledged shares. Vi Holding N.V., as is customary in a secured lending transaction, maintains voting control of the pledged shares, subject to limited exceptions, unless the secured loan is defaulted.
Christian Wuest, Chief Executive Officer of Vimetco, said:
“The shareholder loan will support the funding requirements as Zhongfu prepares for the major expansion of its production facilities. The planned expansion, at the facilities in Henan Province, will involve the construction of a new state of the art cast house and production facilities as well as a new power block, and will significantly enhance Vimetco’s position in the large and growing Chinese market.”