21st Nov 2006 10:14
D1 Oils Plc21 November 2006 D1 Oils plc 21 November, 2006 Financing Package to Fund Roll-out of Refinery Assets D1 Oils plc (D1), the UK-based global producer of biodiesel, today announces thecompletion of the sale and leaseback financing package for its D1 20 refineryassets that was referred to in D1's interim results on 27 September 2006. Thetotal value of the facility, provided by Allied Irish Bank and Investec, is£5.1m. The term of the facility is five years and the effective interest rate is8.0%. The finance package includes the sale and leaseback of the first of the four8,000 tonne D1 20 units, now in operation at the Company's Teesside site, for avalue of £850,000 plus VAT per unit. The facility will also finance a furthertwo of the Company's new upscaled 10,000 tonne D1 20 units once completed. Theagreement will allow for an initial cash release of 35%, with further annualcash releases scheduled over the five year term. D1 currently has 32,000 tonnes of operating refining capacity in Teesside, andplans to expand UK production capacity to 320,000 tonnes by the end of 2007 and420,000 tonnes by the end of 2008. This expansion will include the deployment ofsix new 10,000 tonne D1 20 units at the Teesside site. Elliott Mannis, Chief Executive Officer of D1 Oils said: "This finance package demonstrates the growing confidence in both D1's businessmodel and in our refinery technology in particular. Lenders are willing tofinance both our current working refineries and our upscaled models to bedeployed in the New Year. By enabling us to finance further unit deployments,this agreement marks a significant step in building our biodiesel refiningbusiness in the UK and creating capacity to meet future demand." Contacts D1 Oils: Graham Prince, Head of Corporate Communications Tel: +44 (0) 1642 755580 Mobile: +44 (0) 7973 323840 Brunswick Group: Kevin Byram / Mark Antelme Tel: +44 (0) 20 7404 5959 Notes to Editors D1 Oils plc is a UK-based global producer of biodiesel. We are building a globalsupply chain and network that is sustainable and delivers value from'earth-to-engine'. Our operations cover agronomy, refining and trading. We arepioneering the science, planting and production of inedible vegetable oils; wedesign, build, own, operate and market biodiesel refineries; and we source,transport and trade seeds and seedlings, seedcake, crude vegetable oils andbiodiesel. Our vision is to be the world's leading biodiesel business. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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