Description of Elkhart plant financing, from SEC Form 20F:
<<In May 1999, KBC, through a subsidiary Indiana Bio-Composites LLC (AIBC@), completed an $11 million financing to contract and operate a composite mat facility in Elkhart, Indiana. The financing consisted of $4.5 million in senior debt, which includes an Industrial Revenue Bond, and $5 million in subordinated debt, and equity contributions to IBC of $1.5 million. In general, the $3.5 million in senior debt bears interest at prime plus .5% and is due in 47 months. The Industrial Revenue Bond bears interest at 87% of prime, floating with interest-only payments for the first 46 months where upon principal and interest is due monthly until maturity the date of which is five years from closing. The $5 million subordinated debt bears interest at 12% per annum, with interest payments until the earlier of the second anniversary of the Acceptance Date (defined as the date on which the Elkhart Facility achieves certain performance and engineering design specifications) and the third anniversary of the closing date of the financing. Thereafter, principal will be amortized until the maturity date which is the earlier of the seventh anniversary of the Acceptance Date and the eighth anniversary of the closing date of the financing. The senior debt and subordinated debt are secured by substantially all of the assets of IBC. The $1.5 million in equity consists of $1 million in common interests and $.5 million in preferred interest in IBC. The holders of the preferred interest will have the right to receive annual dividends of $.7 million from cash flow, as defined in the agreement. Of the $1.5 million in equity contribution, KBC contributed $.5 million for common interests and a third party contributed the remaining $1 million for common and preferred interests. KBC has the right to acquire the, and the third party shall have the option to put to KBC its, common and preferred interests of IBC under certain conditions.>> |
