Extension and increase of its Debt Financing Facilities
Avantium has obtained commitments from its Lenders to extend the maturity date of the Debt Financing Facilities from 31 March 2025 to 31 March 2026, as well as to a potential further extension to 31 March 2027, subject to meeting certain conditions.
In addition, the Lenders provided commitments to increase the Debt Financing Facilities by €20.1 million, adding to the existing Debt Financing Facilities (which was fully drawn down in Q3 2024). The draw down of the additional €20.1 million under the Debt Financing Facilities is subject to certain customary, technical and commercial conditions precedent, including, amongst others, Avantium raising additional equity funding by issuing new ordinary shares in the Company.
As part of the increase and extension of the Debt Financing Facilities, Avantium will grant to the Lenders a number of rights to subscribe for ordinary shares, convertible into ordinary shares with a 1:1 conversion ratio at an exercise price of €0.10 per ordinary share (the “Warrants”) upon the effective date of the extension of the Debt Financing Facilities. The number of Warrants to be issued to the Lenders (excluding ASN Bank) is based on (i) the warrant value, being approximately €12.5 million, divided by (ii) the volume weighted average share price over a period of 30 days up to the effective date of the extension of the Debt Financing Facilities.
The issuance of the Warrants is subject to shareholders’ approval. Avantium will ask its shareholders to authorise the Management Board to issue Warrants and to limit or exclude pre-emptive rights in respect thereof, at the Annual General Meeting (the “AGM”) on 14 May 2025. The Warrants are subject to customary anti-dilution protection and Avantium may be required to grant further warrants to the Lenders in case of further increases or extensions of the Debt Financing Facilities.