Westport Fuel Systems Signs US$20 Million Loan Agreement from Export Development Canada
Bolsters Liquidity and Supports Westport™ HPDI 2.0 Launch Activities
VANCOUVER, British Columbia, Dec. 21, 2017 — Westport Fuel Systems Inc. (“Westport Fuel Systems”) (TSX:WPRT) (Nasdaq:WPRT) and Export Development Canada (“EDC”) announced today that they have signed a US$20 million secured term loan agreement (the “loan”) to support the commercial launch of the Westport High Pressure Direct Injection 2.0 (“Westport™ HPDI 2.0”) program.
The loan from EDC is a secured term loan that matures on December 31, 2021, repayable in quarterly installments that increase annually, and with an initial interest rate of 9% plus fees, with the rate reducing to 6% upon achieving certain milestones. Funding of the loan, which is subject to customary conditions precedent, is expected in the coming weeks.
“We have begun the commercialization of the Westport™ HPDI 2.0 technology and expect to ramp up production in 2018,” stated Ashoka Achuthan, Chief Financial Officer of Westport Fuel Systems. “As a made-in-Canada clean technology company, we are pleased to have EDC as a partner.”
“Westport Fuel Systems has the proven technology, leadership, and innovative mindset to be a global champion in the cleantech sector and we are happy to help them scale their new Westport™ HPDI 2.0 product internationally,” said Mark Senn, Director of EDC’s Cleantech Team. “Canada has ambitious goals to combat global climate change and providing this financing to Westport Fuel Systems is one way EDC can contribute to those goals, while also supporting the growth of an innovative Canadian company.”
EDC is Canada’s export credit agency, providing financing, insurance, bonding, trade knowledge, and connections to support Canadian companies sell and invest abroad.
Westport Fuel Systems was assisted in this transaction by CoveView Advisors LLC, a financial advisory firm.
About Westport Fuel Systems
At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow. We are inventors, engineers, manufacturers and suppliers of advanced clean-burning fuel systems and components that can change the way the world moves. Our technology delivers performance, fuel efficiency and environmental benefits to address the challenges of global climate change and urban air quality. Headquartered in Vancouver, Canada, we serve our customers in more than 70 countries with leading global transportation brands. At Westport Fuel Systems, we think ahead. For more information, visit www.wfsinc.com.
Manager, Investor Relations & Communications
Westport Fuel Systems