Suresnes, September 24, 2018: Recylex S.A. (Euronext Paris: FR0000120388 - RX) is today announcing that the Group has reached an agreement with all the relevant financial partners to adjust the terms and conditions applicable under the financing arrangements agreed in December 20161 due to the German sub-group's current situation2.
As a reminder, considering the slowdown in the lead production due to the technical adaptations required for the connection of the main furnace (Bath Smelting Furnace, BSF) to the new reduction furnace and its impact on the Group's financial situation, the forecasted financial targets at September 30th 2018 and at December 31st 2018 (set in December 2016 within the framework of the abovementioned financing), would not had been achieved2, as well as the one at March 31st 2019.
In this context, and in order to enable the Group to face this key phase of its industrial transformation, the financial partners notably agreed to adjust the forecasted financial targets applicable to the German sub-group compare to those set in December 2016. The new targets will be detailed in the 2018 Half-Year Financial Report.
Furthermore, in accordance with the conditions of the financing agreement obtained in December 20163, the Group's German sub-group set up a €12.0 million loan from Glencore International AG for the specific purpose of financing the working capital requirement of the Group's German sub-group arising from the start-up of production at Weser-Metall GmbH's new reduction furnace.
Assisted by independent specialists, Weser-Metall GmbH's teams are working relentlessly to get both the main furnace (BSF) and the new reduction furnace operating together in a satisfactory manner.
Considering the above, Recylex S.A.'s Board of Directors called to approve the consolidated financial statements for the first half of 2018 will meet on Friday, September 28, 2018.
Accordingly, Recylex S.A. will publish its 2018 interim financial results, the consolidated financial statements for the first half of 2018 and the 2018 Half-Year Financial Report on Friday September 28, 2018 (after market close).
Sebastian Rudow, Chairman and Chief Executive Officer of Recylex S.A., commented:
"As targeted, we achieved the agreement with our financial partners to give us more time to improve and execute further technical adjustments to our smelter in its new configuration. In addition to organizational changes in the German sub-group, our dedicated teams and the appointed industrial experts are working on further improvements on both furnaces to increase our lead production. We are in the middle of our industrial transformation and prepared to develop the Recylex Group's future."
1 See Notes 6.7, 30 and 32.5.2 to the consolidated financial statements for the year ended December 31, 2017 and the press release of December 29, 2016.
2 See the press release dated August 29, 2018.
3 See Note 30 to the consolidated financial statements for the year ended December 31, 2017.
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Regenerating the urban mines
With operations in France and Germany, Recylex is a European group specialized in lead, plastics and zinc recycling, as well as a producer of special metals. A key player in the circular economy with long-standing expertise in urban waste recovery, the Group has more than 660 employees and generated consolidated sales of €450 million in 2017. For more information about Recylex: www.recylex.fr and on Linkedin or twitter: @Recylex
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Press/Investor contact:
Emlyn KORENGOLD / TBWA
+ 33 (0)1 49 09 66 51
emlyn.korengold@tbwa.com