Home / Press / PCC secures USD 300 million financing deal for new...

PCC secures USD 300 million financing deal for new silicon production facility in Iceland with aid of CMS

15/06/2015

Dusseldorf – Duisburg-based chemicals, energy and logistics group PCC SE is constructing a production plant for silicon metal in Húsavík in northern Iceland. An agreement on the participation of Icelandic company Bakkastakkur slhf in the financing of the project company, PCC BakkiSilicon hf, has now been completed.

Bakkastakkur, a project joint venture comprising 20 Icelandic pension funds and Icelandic bank Islandsbanki, is contributing more than a quarter of the funding, which totals almost USD 300 million, through a combination of a subordinated convertible bond and preference shares. The bulk of the investment is covered by a senior loan from KfW IPEX-Bank in Frankfurt. The financing structure has a 15-year term. In addition to a Hermes export credit guarantee, it provides for inclusion of an Untied Loan Guarantee. This is the biggest project financing deal in Iceland involving a foreign bank for a considerable time.

A team from CMS in Germany headed by lead partners Dr Dirk Jannott and Dr Herbert Wiehe advised PCC on all legal aspects of the complex structure of the project, including corporate law and financing.

Construction of the state-of-the-art plant is expected to begin in the second quarter of 2015. The facility is scheduled to commence operations at the end of 2017. Some of the raw material extracted from the Polish quartzite quarry operated by PCC Silicium S.A. will then be processed at the new facility. Silicon metal is used in the aluminium industry and to produce silicones, among other uses. PCC had sales in excess of EUR 648 million in 2014. It has 2,879 employees at 39 international locations.

CMS Hasche Sigle

Dr Dirk Jannott, Lead Partner
Dr Nadine Bodenschatz, both Corporate/M&A
Dr Herbert Wiehe
Dr André Frischemeier
Patrick Schultz, all Finance
Dorothée Janzen, Energy Supply Contract and Grid Connection Contract
Dr Thomas Manderla
Dr Antje Gruneberg, both Project Agreements
Thomas Gerdel
Ben Dörnhaus, both Tax
Dr Rainer Kienast
Dr Franziska Reiss, both Employment
Dr Winfried Schnepp, Insurance
Dr Michael Bauer, State Aid

Press Contact
[email protected]

Publication
PCC secures USD 300 million financing deal for new silicon production facility in Iceland with aid of CMS
Download
PDF 121 kB

Related people

Dirk Jannott
Dr. Dirk Jannott
Partner
Duesseldorf
Nadine Bodenschatz
Dr. Nadine Bodenschatz, LL.M.
Senior Associate
Duesseldorf
Herbert Wiehe
Dr. Herbert Wiehe
Partner
Cologne
André Frischemeier
Dr. André Frischemeier
Partner
Frankfurt
Dorothée Janzen
Dorothée Janzen, LL.M. (Ann Arbor)
Partner
Hamburg
Thomas Manderla
Dr. Thomas Manderla
Partner
Duesseldorf
Thomas Gerdel
Thomas Gerdel, LL.M.
Partner
Duesseldorf
Rainer Kienast
Dr. Rainer Kienast
Partner
Duesseldorf
Winfried Schnepp
Dr. Winfried Schnepp
Partner
Cologne
Michael Bauer
Dr. Michael Bauer
Partner
Brussels - EU Law Office
Franziska Reiß
Dr. Franziska Reiß
Senior Associate
Duesseldorf
Patrick Schultz
Patrick Schultz, LL.M.
Ben Dörnhaus, Diplom-Finanzwirt (FH)
Gruneberg, Antje
Dr. Antje Gruneberg, LL.M.
Show more Show less