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Salt Lake Potash financed to deliver new project
DLA Piper has advised Salt Lake Potash on its recent project financing.
Tony Zhang
Firm: DLA Piper (Salt Lake Potash).
Value: US$138 million.
Area: Finance, projects and restructuring.
Key players: DLA Piper’s team was led by finance, projects and restructuring senior associate Nic Hemelaar, with assistance from special counsel Katherine Perincek, senior associate Matthew Roberts and solicitor Aimee Jones.
Deal significance: Funding for the project is being provided under a US$138 million syndicated facility arranged by Taurus Funds Management and will enable SO4 to continue construction on the project.
The facility includes US$47 million from the Clean Energy Finance Corporation. The project has the potential to cut emissions from SOP production by more than 30 per cent compared with alternative non-brine production methods, measured globally. The project plans to harness renewable energy to reduce onsite emissions with the installation of solar generation and battery storage to power the processing plant.
“We are delighted to support SO4 in reaching financial close as it continues to progress the Lake Way Project toward first production,” Onno Bakker, head of finance, projects and restructuring, Australia said.
“SO4 is very pleased to have achieved financial close on the US$138 million Taurus/CEFC debt facility and to have drawn down the initial tranche of US$105 million,” Salt Lake Potash chief executive officer Tony Swiericzuk added.
“Drawdown has facilitated the repayment of the Bridge facility which enabled SO4 to progress the project substantially since August 2019.
“In combination with the recent placement, these funds will ensure the company is well-financed to deliver the Lake Way Project.”
SOP is a premium specialist fertiliser used to improve the quality of high-value crops such as fruit and vegetables. The project is scheduled to begin production in Q1 2021.
