Ecolomondo Corporation has reached an agreement in principle to restructure its original loan agreement (“Loan”) with Export Development Canada (“EDC”)
The original Loan was for an amount of $32.1 million in project financing with EDC, executed on April 3, 2019, to finance the construction of the Company’s first-of-its-kind new turnkey thermal decomposition facility in the Town of Hawkesbury, Ontario (the “Hawkesbury facility”) that will process end-of-life tyres to produce re-usable resources.
In order to give the parties time to finalise documentation for the restructuring of the Loan, EDC has agreed to postpone principal and interest payments to December 29th, 2023. Subject to the execution of final documentation, which is expected to be completed by mid-December, 2023, the Loan is to be restructured with the interest rate capped at 8.5%, capital principal and interest payments postponed until May of 2024, with the original Loan to then be repaid in quarterly instalments of principal and interest based on a twenty-five year amortisation, and the final balance and all capitalised interest will be repayable when the Loan matures in May of 2029. This restructured Loan facility will allow Ecolomondo to work through the final steps to bring the new Hawkesbury TDP facility to commercial operations.
