TIDMAXS
RNS Number : 5760R
Accsys Technologies PLC
08 November 2021
AIM: AXS
Euronext Amsterdam: AXS
8 November 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Accsys Technologies PLC
("Accsys", the "Group" or the "Company")
Hull Tricoya(R) plant funding update
Funding agreed to deliver plant completion
Accsys, the fast-growing and eco-friendly company that combines
chemistry and technology to create high performance, sustainable
wood building products, today announces an update regarding the
funding arrangements for the final stages of construction of the
new Tricoya(R) plant in Hull, UK, by Tricoya UK Limited ('TUK'),
Accsys' joint venture in relation to the Hull plant.
Following our 23 August 2021 update in respect of the Hull plant
construction, we have agreed funding arrangements with our TUK
consortium partners relating to the anticipated costs to complete
the plant.
Under the arrangements:
-- Accsys has entered into a new loan agreement with TUK under
which Accsys will lend up to EUR17m to TUK to be used towards the
Hull plant construction project alongside existing funding in place
for TUK.
-- The loan will accrue interest and be rolled up at a rate
which is expected to be between 5.25 and 6.75% above EURIBOR. The
loan is secured(1) and is repayable by 30 September 2023(2)
The supply and offtake agreements with consortia partners Medite
(sale and purchase of Tricoya(R) wood elements) and INEOS (acetic
anhydride supply) have been updated and reflect the partners'
ongoing commitment to the project.
The new funding and commercial arrangements enable the project
to continue as previously reported. The Hull Tricoya(R) plant is
expected to be commercially operational by July 2022 with
anticipated total project capital costs of between EUR90m and
EUR96m and targeted gross margins of 40% being achievable once at
capacity, supported by on-going strong market demand.
Accsys will publish its interim results for first half of the
2022 financial year (the 6 months ended 30 September 2021) on 23
November 2021.
Notes:
1. The loan is secured against the Hull plant assets, with
security ranking behind that of the existing TUK senior debt
facility with NatWest Bank PLC.
2. 30 September 2023 is six months after the redemption for the
existing TUK senior debt facility.
Ends
For further information, please contact:
Accsys Technologies PLC ir@accsysplc.com
Sarah Ogilvie, Investor Relations
======================================== ======================
Numis Securities (London)
Oliver Hardy (NOMAD), Ben Stoop +44 (0) 20 7260 1000
======================================== ======================
Investec Bank plc (London)
Carlton Nelson, Alex Wright +44 (0) 20 7597 5970
ABN Amro (Amsterdam)
Richard van Etten, Dennis van Helmond +31 20 344 2000
======================================== ======================
FTI Consulting (UK)
Matthew O'Keeffe, Alex Le May +44 (0) 20 3727 1340
======================================== ======================
Off the Grid (The Netherlands)
Frank Neervoort, Yvonne Derske +31 681 734 236
======================================== ======================
Notes to editors:
Accsys (Accsys Technologies PLC) is a fast-growing business with
a purpose: changing wood to change the world. The company combines
chemistry, technology and ingenuity to make Accoya(R) wood and
Tricoya(R) wood elements: high performance wood products that are
extremely durable and stable, opening new opportunities for the
built environment and giving the world a choice to build
sustainably. Accsys transforms fast-growing, certified sustainable
wood into building materials with an up to 50-year warranty,
locking carbon stored in the wood into useful products for decades,
with performance characteristics that match or better those of
non-renewable, resource-depleting and polluting alternatives.
Accsys is listed on the London Stock Exchange AIM market and on
Euronext Amsterdam, under the symbols 'AXS'. Visit
www.accsysplc.com
Accoya(R) solid wood is sustainable, durable, and stable with
exceptional performance, finish and sustainability. Accsys'
proprietary acetylation process makes the wood more dimensionally
stable and because it is no longer easily digestible, extremely
durable. It is one of very few building materials to be Cradle to
Cradle Certified(TM) at the Gold level, with a Platinum rating for
Material Health, confirming that no harmful or toxic additives or
chemicals are present to leach out into the environment. Primary
applications for Accoya(R) wood include windows, doors, cladding
and decking, where the combination of performance and
sustainability benefits compete favorably against hardwoods,
plastics, metals and concrete. Visit www.accoya.com
Tricoya(R) acetylated wood elements are produced for use in the
fabrication of panel products such as medium density fibreboard
(MDF). Panel products made with Tricoya(R) wood elements are truly
durable and stable enough for use outdoors and in wet environments,
unlocking new possibilities for design and construction. They have
been lauded as the first major innovation in the wood composites
industry in more than 30 years and bring the flexibility of
traditional panel products and sustainability benefits of wood to a
whole new range of applications. Visit www.tricoya.com
Any references in this announcement to agreements with Accsys
shall mean agreements with either Accsys or its subsidiary entities
unless otherwise specified. 'Accsys' and 'Accsys Technologies' are
trading names of Titan Wood Limited ("TWL"), a wholly-owned
subsidiary of Accsys Technologies PLC. Accoya (R) , Tricoya (R) and
the Trimarque Device are registered trademarks owned by TWL, and
may not be used or reproduced without written permission from TWL,
or in the case of the Tricoya (R) registered trademark, from
Tricoya Technologies Limited, a subsidiary of TWL with exclusive
rights to exploit the Tricoya
Market Abuse Regulation
This announcement contains inside information for the purposes
of EU Market Abuse Regulation and UK Market Abuse Regulation, as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018. Upon publication of this announcement, the
inside information is now considered to be in the public domain.
The person responsible for arranging for the release of this
announcement on behalf of Accsys is Angus Dodwell, General Counsel
& Company Secretary.
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