SELECTA ENTERS INTO A €50.0 MILLION LIQUIDITY FACILITY AGREEMENT
Steinhausen, 26. March 2020, On 25 March, 2020, Selecta Group B.V. (“Selecta” and together with its subsidiaries, the “Group”) entered into a liquidity facility agreement (the “Facility Agreement”) with one or more entities managed, advised or controlled by KKR Credit Advisors (US) LLC, or an affiliate or subsidiary thereof (the “Lender”), under which the Lender has committed to provide Selecta and certain of its subsidiaries with a €50.0 million single currency term loan facility (the “Facility”). The Lender’s commitment is subject to customary conditions precedent included in the Facility Agreement.
It is intended that the proceeds of the Facility will be used to fund the Group’s general corporate and working capital requirements.
The Facility will be guaranteed on a senior secured basis by the subsidiaries of Selecta that guarantee the obligations under Selecta’s senior secured notes due 2024 (the “Notes”) and the super senior revolving credit facility agreement entered into among, inter alios, Selecta and the lenders thereunder (the “SSRCF”). The Facility will be secured by the same collateral as the Notes and the SSRCF, and will receive proceeds of an enforcement or realization of collateral ahead of the Notes under the terms of the intercreditor agreement dated January 31, 2018, among, inter alios, Selecta, U.S. Bank Trustees Limited and the facility agent of the SSRCF.
The term of the Facility will be one year from the closing date of the Facility Agreement. The Facility Agreement will include representations, warranties, undertakings and events of default which are customary for a facility of this type and substantially the same as those under the SSRCF. Loans under the Facility will bear interest at rates per annum equal to EURIBOR (subject to a zero percent floor) plus a margin of 3.50% per annum.
Selecta further announces that Board Member Mark Brown as well as Non-Executive Directors Dorothee Deuring and Andy Ransom will leave their roles and the Group with immediate effect. The Board wishes to thank Mr Brown, Ms. Deuring and Mr Ransom for their support and service and wishes them well for the future.