Narrative
Full Description
Project narrative
On January 10, 2011, ICBC entered into a $19.5 million USD loan agreement with Hoku Corporation — a now-defunct Idaho-based clean energy company that specialized in polysilicon production for solar panels — to support the company’s continued financing needs during the construction of its manufacturing facility. The proceeds were used by the borrower for general corporate purposes, particularly related to the development of its polysilicon plant in Pocatello, Idaho. The maturity of the loan is the earlier of January 10, 2014 or the 10th business day prior to the expiration or termination of the standby letter of credit. The interest rate is LIBOR plus 2.6% (2.90% as of March 31, 2011). The loan was fully secured by a standby letter of credit issued by ICBC’s Sichuan Branch and procured by Tianwei in Chengdu, China, with a drawable facility amount of $22 million USD. Hoku also entered into a reimbursement agreement with Tianwei to cover all interest, fees, and expenses related to the standby letter of credit. As of March 31, 2011, the full $19.5 million USD was outstanding.
Staff comments
1. The entirety of the loan agreement is not available. However, Form 10-K from the company is available for descriptions of the loan. It can be accessed at https://getfilings.com/sec-filings/110715/HOKU-SCIENTIFIC-INC_10-K/. 2. Hoku Corporation was a U.S.-based clean energy company headquartered in Pocatello, Idaho. It began in fuel cell technology before transitioning to solar manufacturing. In 2009, it became majority-owned by China’s Tianwei New Energy Holdings. Hoku declared bankruptcy in 2013, and its assets were liquidated. 3. AidData estimates the interest rate by adding the margin (2%) to 6 months LIBOR.