Narrative
Full Description
Project narrative
On February 7, 2011, CITIC Bank International Limited entered into a $19 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 corporate financing requirements. The proceeds were used by the borrower for general corporate purposes, including construction and operational expenses related to its polysilicon plant in Pocatello, Idaho. The maturity of the loan is the earlier of February 4, 2013 or the 15th business day prior to the expiration or termination of the standby letter of credit. The interest rate is LIBOR plus 2.5%. The loan was secured by standby letters of credit issued by the China Branch of CITIC Bank International Limited and procured by Tianwei in favor of the New York Branch. Hoku also entered into a reimbursement agreement with Tianwei, under which it agreed to cover all interest, fees, and expenses incurred in connection with the standby letters of credit. As of March 31, 2011, $9 million USD of the loan 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.