Avantium
Extending and increasing the existing Debt Financing Facilities
- In September 2024, Avantium engaged Avaxa to assist with the extension and increase of its existing Debt Financing Facilities.
- Avantium, a leading company in renewable and circular polymer materials, will apply the funding towards support of the commissioning and start-up phase of its first-of-a-kind FDCA Flagship Plant. This plant is pivotal for the roll-out of Avantium's technology through a licensing-based strategy. The Flagship Plant will produce FDCA and PEF which is directly sold to its offtake partners. Simultaneously, it pursues the sale of technology licenses to industrial partners who are build large-scale FDCA production facilities.
- Avantium obtained commitments from its consortium of lenders (ABN AMRO Bank, ASN Bank, ING Bank, Rabobank, and Invest-NL) for both the increase and the extension of the financing package. The transaction involved securing an increase of EUR 20.1mln in the existing term loan facilities, bringing the total to EUR 125.1mln, and extending the maturity date from March 2025 to March 2026, including an option for another one-year extension to March 2027 upon meeting specific already agreed upon milestones.
- Avaxa provided comprehensive support throughout the process, including a thorough review of the financial model and challenging the financial forecasts, with a particular focus on the underlying assumptions. In parallel, Avaxa compiled a detailed Financing Memorandum to provide lenders with a clear understanding of Avantium’s achievements as well as its current and forecasted financial position and strategic objectives.
- The transaction successfully closed in December 2024, ensuring Avantium is well-positioned for its next phase of growth.
- For more information, please refer to Avantium’s press release: https://newsroom.avantium.com/avantium-strengthens-its-financial-position-to-support-the-start-up-of-its-fdca-flagship-plant-and-announces-the-launch-of-an-accelerated-bookbuild-offering/
