Hoku宣布与中国招商银行签订1000万美元信贷协议，必须在协议生效起30天内拨出借款。
Hoku Corp. (Nasdaq: HOKU) announced that they have entered into a Credit Agreement with China Merchants Bank Co., Ltd., New York Branch.
The Credit Agreement provides for one or more term loans in an aggregate principal amount not to exceed $10 million, which must be borrowed within 30 days of the effective date of the Credit Agreement. The principal amount of the Loans and any unpaid interest thereon must be paid in full by December 20, 2013. Hoku may prepay the Loans, in whole or in part, at any time without penalty, provided that any such prepayment must be for a minimum of $100,000 and in multiples of $100,000 in excess thereof. Funds provided pursuant to the Credit Agreement are for general corporate purposes, including capital expenditures related to the polysilicon production plant currently being constructed by Hoku’s subsidiary, Hoku Materials, Inc., in Pocatello, Idaho.
The Loans will bear interest at a per annum rate equal to the LIBOR Rate (as set forth in the Credit Agreement) for the applicable interest period plus 2% or, at the election of Hoku, any portion of the Loans that is not less than $1,000,000 may bear interest at an annual rate equal to the rate of interest announced by the Lender as its “prime rate.” Hoku will pay an annual facility fee of 0.5% on the Maximum Loan Amount. Hoku has also agreed to pay the Lender’s reasonable costs and expenses in connection with the preparation, negotiation and delivery of the Credit Agreement.
