Appoints Macquarie Bank as Mezzanine Debt Arranger
Appoints Macquarie Bank as Mezzanine Debt Arranger
Perth, Mar 8, 2019 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (ASX:ATC) (FRA:A3Y) is pleased to announce that it has officially mandated Macquarie Bank (Macquarie) as the preferred mezzanine lender for its proposed Malaysian high purity alumina (HPA) plant.


- Macquarie Bank mandated as preferred Mezzanine lender

- US$90 million indicative mezzanine debt term sheet

On 11 May 2018 Altech announced that it had received an indicative and non-binding mezzanine debt (subordinate to senior debt) term sheet for a facility amount of up to US$90 million. Macquarie subsequently appointed an independent technical advisor to undertake detailed project due diligence, which also takes into consideration the extensive data base of prior due diligence work commissioned by the senior lender German government-owned KfW IPEX-Bank GmbH (KfW IPEX-Bank).

The Company and Macquarie have now reached agreement on mezzanine debt terms and executed a mandate letter, which appoints Macquarie as the exclusive mezzanine debt provider, subject to its usual due diligence processes such as legal, market and technical. Completion of the mezzanine facility by Macquarie is conditional upon its view of all due diligence outcomes and agreement with KfW-IPEX Bank on inter-creditor arrangements.

About Altech Chemicals Ltd

Altech Chemical Ltd ASX:ATCAltech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.

Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.



Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: +61-8-6168-1555

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: +61-8-6168-1555

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: +49-69-175-548320

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