REG - Accsys Technologies - Hull Tricoya plant funding update

Accsys TechnologiesAnnouncement

08/11/2021 07:05

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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(®) 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(®) 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 €17m 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(®) 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(®) plant is expected to be commercially
operational by July 2022 with anticipated total project capital costs of
between €90m and €96m 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 (mailto:ir@accsysplc.com)

Sarah Ogilvie, Investor Relations
 Numis Securities (London)               +44 (0) 20 7260 1000

Oliver Hardy (NOMAD), Ben Stoop
 Investec Bank plc (London)              +44 (0) 20 7597 5970

Carlton Nelson, Alex Wright

                                       +31 20 344 2000
 ABN Amro (Amsterdam)

Richard van Etten, Dennis van Helmond
 FTI Consulting (UK)                     +44 (0) 20 3727 1340

Matthew O'Keeffe, Alex Le May
 Off the Grid (The Netherlands)          +31 681 734 236

Frank Neervoort, Yvonne Derske

 

 

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(®) wood and Tricoya(®) 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
(http://www.accsysplc.com)

Accoya(®) 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™ 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® 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
(http://www.accoya.com)

Tricoya(®) acetylated wood elements are produced for use in the fabrication
of panel products such as medium density fibreboard (MDF). Panel products made
with Tricoya(®) 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 (http://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(®), Tricoya(®) 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(®) 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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