Siliken, the international company dedicated to developing applications for the PV solar energy sector, has once again gained the banks trust in its Strategic Plan 2012-2015. Today, the company has signed an agreement to refinance its current bank debt for the total amount of 111.4 million Euros.
In 2011, Siliken increased its business volume by 15% with respect to 2010 and foresees a 20% growth in 2012. The dramatic drop in prices across the sector of about -60% in the last two years, however, made it unfeasible to obtain the cash flows needed to draft the Strategic Plan in the short term. This is why the company turned to its banking pool.
Several banks were involved in the operation, such as Bankia, Spanish Credit Bank and Catalunya Bank. These banks were the guiding and structuring entities of the new financing status. Siliken furthermore obtained the support of 12 national and international banks that have put their trust in the soundness of the company and in the ongoing development of its projects in the PV solar market.
The debt refinancing consists of two segments. Segment A of the structural financing involves the renegotiation of a syndicated loan and a number of bilateral loans for the amount of 41.9 million Euros. This segment will be refinanced for a period of 5 to 7 years, with yearly repayments.
Segment B involves a modified novation of current financing instruments for the amount of 69.5 million Euros. The term of this second segment will be 5 years and includes a tacit renewal scheme which depends on the compliance with financial agreements.
As Carlos Navarro, President of Siliken, puts it, refinancing the debt adjusts Silikens financial structure to its business needs. Looking at the overall financial situation, Siliken is very pleased with the banking support it obtained as a sign of their trust in the soundness of our Strategic Plan.
This agreement is laid down in the Strategic Plan 2012-2015 in which one of its main objectives is the adaptation of Siliken's financial structure to the generation of cash flows from its business operations to secure both short and long term financial stability.
