Post by
KewlNewf on Nov 15, 2018 7:54am
NR from Feb but provides a multitude of great info...!
Clearford increases project financing deal to $100M 2018-02-27 17:54 ET - News Release Mr. Kevin Loiselle reports CLEARFORD WATER SYSTEMS ANNOUNCES EXPANDED $100 MILLION FUNDING COMMITMENT FOR CANADIAN WATER INFRASTRUCTURE PROJECTS AND UPDATES ON NORTH AMERICAN ACTIVITIES Clearford Water Systems Inc. has entered into a memorandum of understanding (MOU) with Sustainable Water Investments Inc. (SWI), a Vancouver-based investment vehicle formed and capitalized by a European bond issuance platform, pursuant to which SWI agreed to arrange the financing of up to 100 per cent of the capital costs associated with the implementation of certain qualified water and waste-water-related infrastructure development projects, including continuing operations and maintenance contracts under Clearford's pay-for-performance (P4P) delivery model, up to an aggregate value of $100-million. The MOU supersedes and expands on financing terms previously agreed with Clearford to include Canadian private developments, in addition to municipal, with adequate credit rating and/or collateral value to service long-term financial obligations under the P4P delivery model for the design and build, operate, and maintain (DBOM) offering of water and waste water systems, including, but not limited to, the company's proprietary all-in-one Clearford One waste water system and advanced M-brane packaged treatment solutions. Under the terms of the MOU, SWI was granted a right of first refusal (ROFR) on the financing of each qualified DBOM project until Feb. 28, 2020. The project finance facility will support the execution of the strategic business plan originally announced by the company on June 22, 2017, and supplements the company's recent acquisition of Koester Canada Inc. (now Clearford-Koester) and its subsidiary, Team Aquatic Operations Group (now Clearford Waterworks). In conjunction with the execution of the MOU, the company has already drawn the amount of $1.1-million (U.S.) from the project finance facility, supported by continuing operations and maintenance contracts of Clearford-Koester. The advance was made by way of a 10-year loan, bearing a simple interest rate of 9.75 per cent, payable on a semi-annual basis, with the principal amount due at end of term, secured by way of general security agreement on the assets of Clearford-Koester. A transaction fee of $82,500 (U.S.) was charged with respect of the MOU and the first instalment made thereunder. The company is also providing an update on its activities in the North American market. Clearford-Koester recently moved into a 30,000-square-foot manufacturing facility and offices located in Hamilton, Ont., which, along with integrated business and engineering support from other members of the Clearford group of companies, will allow the company to triple its production capacity for fabricating containerized and skid-mounted treatment solutions. Richard Nie, formerly president of Koester Canada Inc., commented: "The support we have received since joining Clearford has enabled us to accelerate the sales and delivery of our packaged M-brane plants, particularly in New York state where the Koester brand is well recognized for its quality. The sales backlog in New York state alone currently stands at $1.4-million (U.S.), while interest from customers in the United States as a whole is growing due to Clearford-Koester's newly enhanced value proposition." Clearford has signed conditional contracts totalling $8.3-million. Under these contracts clients have the right to delay or cancel all future obligations at their discretion. Opportunities in Ontario also continue to develop after the first two M-brane plants were delivered under DBOM contracts for (i) the Fetherston mobile part servicing project in late 2015, and (ii) the $1.2-million landfill leachate treatment facility in Ontario in 2017. Clearford-Koester is the first contractor in Ontario to implement hybrid membrane technology from Ontario-based Fibracast and German-made industrial tubular membranes from Berghof Membranes. "The sales pipeline in Ontario is strengthening with $1.5-million in signed contracts for execution in 2018 and $5.5-million in awarded contracts, which are currently going through governmental approval processes. The company also has additional opportunities, in relatively advanced stages, mainly for recreational, resort and estate-type developments requiring innovative water servicing solutions," added Mr. Nie. "The company is uniquely positioned for complementary sales of the unified Clearford One solution, including treatment plants which utilize the UV Pure disinfection products and long-term operating services contracts through its Clearford Waterworks division, similar to the recently signed five-year operations and maintenance agreement for the private water distribution and waste water treatment systems at Carp Airport in Ottawa, which is currently completing the installation of the Clearford One collection network." Kevin Loiselle, president and chief executive officer of Clearford, commented: "This is precisely the type of robust sales pipeline that Clearford requires in order to execute on its business plan. In the space of only three months since acquiring Koester-Canada, Clearford has taken control of the value chain critical to its market penetration. It has also identified advanced sales opportunities, with increasing margins, generating steady cash flows from utility-like operations of water and waste water systems." Mr. Loiselle added: "Under the previous P4P funding arrangement, Clearford was restricted to municipal servicing opportunities that meet the credit ratings required by traditional lending facilities. The expanded P4P framework provides for far greater flexibility and therefore opportunity, capturing the underlying value of the assets being created or serviced under our watch." About Clearford Water Systems Inc. Clearford Water Systems is a provider of unified water management solutions for the design, build, finance, operation and maintenance of water and waste water infrastructure systems. The company's technology-based water solutions include the Clearford One waste water infrastructure systems, Clearford M-brane packaged treatment solutions and a full range of UV Pure water disinfection products. 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