Sandvika September 4, 2013: REC (Renewable Energy Corporation ASA) has today canceled its revolving bank credit facility and guarantee facility with DNB and Nordea.
REC is in the process of spinning off its Solar business. The revolving bank facility has limited value for REC in its current form, and the need for bank guarantees for REC's remaining Silicon business will be limited. Going forward, both REC's Solar and Silicon business will seek to establish new bank credit facilities that better meets their specific business needs.
The NOK 400 million revolving bank credit facility was undrawn and maturing in April 2014. Guarantees already issued under the guarantee facility remains unaffected. REC will over some time free up NOK 100 million of cash deposit as existing commitments towards the banks are phased out.
At the same time the NOK 200 million "Indemnification Loan" has been renegotiated to remove all financial covenants and the maturity date of this loan is moved to February 2016.
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REC is a leading global provider of solar electricity solutions. With nearly two decades of expertise, we offer sustainable, high-performing products, services and investment opportunities for the solar and electronics industries. Together with our partners, we create value by providing solutions that better meet the world's growing electricity needs. Our 2,200 employees worldwide generated revenues of more than NOK 7 billion in 2012, approximately EUR 1 billion or USD 1.3 billion.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)