REC Silicon, a company that produces advanced silicon materials for the solar and electronics industries and a wholly owned subsidiary of REC Silicon ASA, has secured a $40 million term loan with Hanwha International, an affiliate of the company’s two largest shareholders, Hanwha Solutions and Hanwha Corporation.
This loan is expected to support REC Silicon’s liquidity position and provide it with the capital necessary to cease production at Moses Lake safely and in compliance with applicable regulations.
The facility’s shutdown follows multiple improvement efforts for critical impurities resulting from the company’s post-reactor finishing and handling systems. REC said it had engaged third-party resources to evaluate and mitigate the impurities.
The loan terms generally align with the financial conditions of the company’s existing bank loan agreements and are secured by the company’s assets. The maturity date is January 24, 2026.
The company also announced that its U.S. affiliate, along with QCells, its customer for granular polysilicon produced at Moses Lake, has entered into a mutually agreeable termination agreement.
Together, both the loan and the termination of the Polysilicon Supply Agreement are steps that will enable the Company to concentrate on its silicon gas business.
The Company also plans to shut down polysilicon production at its Butte, Montana facility in February 2024. Once the shutdown process at the Moses Lake facility is complete, REC Silicon will completely discontinue the production of polysilicon at both facilities.
The company is undergoing a strategic review to address financial and operational challenges. It plans to drive costs out of its silicon gas assets and optimize production at the Butte facility.
According to Mercom’s recently released Annual and Q4 2024 Solar Funding and M&A report, in 2024, announced debt financing came to $18.8 billion, 6% lower compared to $20 billion in 2023. Securitization deals were a key contributor, with a record $5 billion in 16 deals.
