- Update on the German subgroup’s financing1
The Recylex Group (Euronext Paris: FR0000120388 - RX) indicates today, that, as part of the ongoing discussions with its financial partners, the German sub-group has obtained an extension until May 31st, 2020 of the timetable for these discussions (compared to April 30th, 2020 previously2), under certain conditions. In this regard, the German sub-group will have in particular to provide a progress report the assets disposals projects aimed at restructuring its debt and the financial partners will assess before mid of March 2020 whether and under which conditions their financing could be maintained until May 31st, 2020.
The Group is also examining the consequences of these divestment projects on its remaining business models and the related strategic developments, with a view to continuing the remaining Group's activities.
In view of the current status of the divestiture processes and subject to the position of its financial partners before mid of March, the German sub-group has obtained:
- From Glencore International AG, an extension of the existing bridge financing up to €4.4 million in order to cover its identified cash requirements until May 31st, 2020 (compared to April 30th, 2020 previously). The total amount of the bridge financing is now increased up to €65.8 million (compared to €61.4 million previously) and is drawn to date up to an amount of €43.7 million.
- From Glencore International AG, the extension to May 31st, 2020 of the maturity date of the bridge financing as well as of the additional financing (€16.0 million).
- From its financial partners, the postponement to May 31st, 2020 of their rights of early termination under the financing obtained in December 2016, as well as the postponement to the same date of the repayments due on December 31st, 2018, March 31st, 2019, June 30th, 2019, September 30th, 2019, December 31st, 2019 and March 31st, 2020, for a total amount of €12.0 million, as well as interests due on December 31st, 2019 and March 31st, 2020 for a total amount of approximately €5.5 million.
Recylex will keep investors informed about the developments of the ongoing discussions with the German subgroup's financial partners.
- Update on the financial situation
As of January 31st, 2020:
- The German subgroup's net debt amounted to €159.9 million euros, compared to €151.6 million euros on December 20th, 2019. This increase is mainly due to the drawdown on the bridge financing up to €3.0 million, a decrease in the net cash position of €3.0 million and deferred interests up to €2 million.
- The parent company Recylex S.A.'s net debt amounted to €43.9 million, compared with €48.5 million on December 20th, 2019. This change is mainly due to the deterioration in the net cash position (€9.0 million compared to €4.5 million as of December 20th, 2019).
- The Group's consolidated net debt amounted to €184.4 million euros compared with €181.1 million euros on December 20, 2019.
- Earlier maintenance shutdown of Weser-Metall GmbH’s smelter
Weser-Metall GmbH (WMG) has recently noticed a significantly advanced wear and tear of its main furnace’s refractory bricks due to the evolution of the smelter’s feeding mix, with more abrasive materials than in the past. WMG implemented some immediate repairs and is closely monitoring the evolution of its furnace with temporary measures which could reduce its production in the coming weeks.
Consequently, the smelter’s major maintenance shutdown is now scheduled for March 2020, instead of June 2020 as originally planned (no major maintenance shutdown was performed in 2019). During this maintenance shutdown, a complete refractory upgrade is planned to be performed for both furnaces.
Due to this scheduled shutdown, the Group will adapt accordingly its purchasing of used lead-acid batteries as well as the supply of secondary materials to the Weser-Metall GmbH’s smelter.
1 See in particular the press releases of December 5th, 2018, March 26th, 2019, June 17th, 2019, July 15th, 2019, July 31st, 2019, October 28th, 2019, November 7th, 2019, November 27th, 2019 and December 20th, 2019.
2 See press releases dated November 28, 2019 and December 20, 2019.
Disclaimer: This press release is a non-official translation into English of the press release of the same date issued in French language and is provided solely for the convenience of English-speaking users. This press release should be read in conjunction with and construed in accordance with French law.
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Raw materials from urban mines
The Recylex Group, based in France and Germany, is a European specialist in the recycling of lead, zinc, polypropylene and in the production of high-purity special metals. As a key player in the circular economy and thanks to its long-standing know-how, Recylex achieved consolidated sales of €306 million in 2019 and employs more than 730 employees.
For more information about the Recylex Group: www.recylex.eu
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Press & Investor contact: T +33 (0)158 47 29 91 | E info@recylex.eu
Recylex S.A. | Registered office: 6 place de la Madeleine | 75008 Paris | France
Administrative office: 79 rue Jean-Jacques Rousseau | 92158 Suresnes Cedex | France
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