BORDEAUX, France, December 18, 2012 /PRNewswire/ --
Agreement signed
for eight future CHO Power plants
Short-term loan
and bridge loan signed for a total amount of €6.7 million
FINANCING AGREEMENT FOR EIGHT
ADDITIONAL FACTORIES
The Europlasma Group announced that its subsidiary CHO Power has
negotiated and signed a new agreement with the partner who provided
most of the financing for the construction of the first CHO plant
in Morcenx. This agreement, establishing the terms for the
construction and financing of eight new plants to generate
electricity from waste and biomass, provides for the financing of
10% of the construction costs by CHO Power, the remainder being
funded by the financing partner. In exchange for the funding
provided by it, CHO Power will have a 25% stake in the new plants;
this stake may be increased to 40% provided that certain criteria
are met relating to the progress and success of the project. CHO
Power will be awarded engineering, procurement and construction
(EPC) contract and operations and maintenance (O&M) contract
for each plant.
This agreement is contingent upon acceptable performance by the
CHO plant in Morcenx, which is the first of its kind, and, in
particular, the takeover scheduled for the winter 2012/2013.
BRIDGE LOAN FROM CREDIT SUISSE
EUROPLASMA SPV LLC
Pending the next fundraise by its subsidiary CHO Power, the
Group has secured from its principal shareholder, Crédit Suisse
Europlasma SPV LLC, a bridge loan of a nominal amount of up to €4
million for a maximum term of 24 months. The loan is to be released
in two tranches: the first tranche of €2 million will be released
upon execution of the loan agreement, and the second tranche will
be contingent upon completion of the CHO plant in Morcenx.
The terms of remuneration of the bridge loan will include
capitalized interest calculated at the rate of 12% (increased to
15% after the first year), and the sale of share warrants to be
issued by CHO Power representing a stake of up to 4% in the
company's share capital. Europlasma has a right of first
refusal.
The bridge loan is secured by a pledge of the shares of the
subsidiary Inertam and the control of the sale of certain assets
belonging to the Group, in case of no reimbursement.
At the lender's request, the bridge loan may be reimbursed with
Europlasma shares, subject to the approval of the shareholders
concerned or, alternatively, with CHO Power shares.
SHORT-TERM ADVANCE BY THE FINANCIAL
PARTNER, OWNER OF CHO MORCENX
To help CHO Power meet its short-term cash requirements, the
company CHO Morcenx, which owns the plant, also granted CHO Power a
non-interest-bearing short-term advance of €2.7 million to be
reimbursed on June 30, 2013. The
amount of this advance corresponds to a portion of the holdback to
be paid by CHO Morcenx upon completion of the plant (take-over
date), scheduled for the winter 2012/2013.
This advance has given rise to a parent guarantee issued by
Europlasma. It is further guaranteed by a pledge of the Europlasma
and CHO Power's VAT receivables and a mechanism that would allow
the financial partner to change the governance of CHO Power, in
case of no reimbursement.
This financing confirms the support of our financial partner and
our principal shareholder and positions the group on a solid
footing to meet its short term financial obligations and focus on
progressing the CHO Morcenx project, with the aim of achieving the
successful takeover by winter 2012/2013, which is the highest
objective of both management and staff.
About Europlasma
Europlasma is a French group specialized in clean technologies
and renewable energy production. Founded in 1992 to apply its
proprietary torch plasma technology to the destruction and re-use
of hazardous waste, the Europlasma group now has four
divisions:
- Europlasma is a major international player in the field
of plasma torch systems and related applications.
- Inertam is a leading worldwide specialist in the
elimination and recovery of asbestos waste and hazardous
waste.
- Europe Environnement is the European specialist in
ventilation and air-depollution systems for industries.
- CHO Power provides renewable energy production solutions
via the gasification of waste and biomass.
http://www.europlasma.com [Alternext - NYSE Euronext Paris
- Mnemo : ALEUP - Isin : FR0000044810]
Press and investor relations:
Didier PINEAU - General Manager / Anne BORDERES -
Press and shareholder relations
Estelle MOTHAY - Chief Financial Officer
Phone: + 33(0)556-747-372
contactbourse@europlasma.com