SALT
LAKE CITY, July 2, 2024 /PRNewswire/ -- Eco Material
Technologies Inc. ("Eco" or the "Company"), the leading producer,
marketer and distributor of supplementary cementitious materials
("SCMs") and producer of Green Cement products in the United States, is pleased to announce the
successful closing of a new asset-based lending facility ("ABL")
with Mizuho Bank, Ltd., as
administrative agent, and sole lender. The facility includes
$75 million of committed liquidity
and features an accordion that allows for potential expansion up to
$100 million to support future growth
opportunities. Under the terms of the agreement, the ABL will have
a tenor of five years, providing Eco with enhanced financial
flexibility and support for its strategic initiatives.
This new facility will consolidate all existing current debt
instruments into the new expanded facility, enabling Eco to
simplify its debt structure, extend maturity, increase liquidity
and reduce cost of capital. The asset-based facility incorporates a
tiered pricing structure based on the Secured Overnight Financing
Rate (SOFR), offering borrowing levels with better economic terms
compared to the existing financings. The facility includes standard
fixed charge coverage ratio covenant tests to be applied.
Grant Quasha, Eco's Chief
Executive Officer, commented, "Eco is pleased to announce the
successful refinancing of its debt and enhanced liquidity into a
more streamlined and economical facility that provides flexibility
to grow in the future. The agreed terms evidence the strides made
by the business to strengthen the balance sheet while growing the
size and profitability of the business over the past several years.
Going forward, we will be able to access capital when needed to
grow at attractive rates without significant administrative burden.
This is an important step in Eco's journey, and we are excited to
continue down our strategic path with the enhanced liquidity now
available to us."
With the closing of the ABL, the Company is optimally positioned
to leverage its strengthened balance sheet and execute on new
growth opportunities.
Latham & Watkins, LLP served as legal counsel to Eco on the
ABL facility.
About Eco Material Technologies, Inc.
Eco Material
Technologies Inc. ("Eco Material" or "the Company") is the leading
producer, marketer and distributor of ash based sustainable
cementitious ("SCM") products in the
United States. Eco Material is also an environmentally
focused, near-zero carbon cement producer in the United States. SCMs are the most
impactful, environmentally friendly alternative materials to
portland cement that significantly reduce the CO2 footprint and
improve the performance and longevity of cement's end-product,
concrete. Coal ash and volcanic ash are used to
replace a portion of highly polluting portland cement in
concrete and can be further upgraded to higher performance Green
Cement products by the Company. Eco Material also supplies services
to electric utilities related to management of coal ash and other
CCPs and recycles over 10 million tons per year of material into
beneficial use - reducing emissions and avoiding landfilling of
material.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements contained in this press
release constitute "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These forward-looking statements
represent Eco's expectations or beliefs concerning future events,
and it is possible that the results described in this press release
will not be achieved. These forward-looking statements are subject
to risks, uncertainties, and other factors, many of which are
outside of Eco's control that could cause actual results to differ
materially from the results discussed in the forward-looking
statements.
Any forward-looking statement speaks only as of the date on which
it is made, and, except as required by law, Eco does not undertake
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.
New factors emerge from time to time, and it is not possible for
Eco to predict all such factors. When considering these
forward-looking statements, you should keep in mind the risk
factors and other cautionary statements in our filings with the
Securities and Exchange Commission. The risk factors and other
factors noted in Ranger's filings with the SEC could cause its
actual results to differ materially from those contained in any
forward-looking statement.
Media Contact: Michael Ganci,
mganci@kcsa.com
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SOURCE Eco Material Technologies Inc