17 September 2014

5N Plus gains US$17.5m in financing from EDC

Export Development Canada (EDC) has announced US$17.5m in financing for Montreal-based specialty metal and chemical products firm 5N Plus Inc.

5N Plus provides specialty purified metals such as bismuth, gallium, germanium, indium, antimony, cadmium, selenium and tellurium, and also produces related semiconducting compounds such as cadmium telluride (CdTe), cadmium sulphide (CdS) and indium antimonide (InSb) as precursors for the growth of crystals for solar, LED and eco-friendly materials applications. The firm also has fully integrated closed-loop recycling facilities.

EDC is Canada’s export credit agency, providing financing, insurance and bonding to help Canadian companies respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.

EDC’s financing is part of a larger US$125m credit facility for 5N announced in early August, which will be used to help it grow its international operations. Six other financial institutions were included in the facility, with HSBC Bank Canada acting as the lead arranger. EDC says that it was chosen as a commercial partner because its extensive market knowledge aligns well with 5N’s growth strategy.

“As our revenues have shown in the last five years, our company has been focused on growth,” says 5N’s president & CEO Jacques L’Écuyer. “This financing will be used to support our continued growth, and we feel that EDC is a great partner to have moving forward because they understand our international vision, and are well positioned to help us along our new strategic path,” he adds.

To date, 5N has grown largely through acquisitions, but its strategy now is to increase value-added activities, expand recycling operations, broaden its presence in Asia, and capitalize on the international platform that it has built.

About 99% of 5N’s Canadian sales are exports, demonstrating the strong global demand for its materials. Many of the purified metals that it produces (e.g. bismuth, gallium, germanium and tellurium) are critical precursors in growing markets for solar panels, LEDs and other eco-friendly materials.

“5N’s potential for international growth is tremendous, and EDC has the resources to help support that growth,” says Carl Burlock, senior VP, financing and investments, at EDC. “We can provide financing, market intelligence, and advice to help 5N, and other companies like 5N, establish and grow their presence in different parts of the world,” he adds. “Opening doors to new markets means more customers, and increased export sales.”

See related items:

5N Plus announces new US$125m credit facility

Tags: 5N Plus

Visit: www.5nplus.com

Visit: www.edc.ca