Westport Fuel Systems Secures US$10 Million Credit Facility from Export Development Canada

Rhea-AI Summary

Westport Fuel Systems announced a US$10 million term credit facility from Export Development Canada (EDC) to enhance liquidity during the COVID-19 pandemic. The drawdown period lasts for nine months with a maturity date set for twelve months after the agreement. The interest rate is US Prime + 3.00% on drawn amounts. Previous amendments allowed for US$6.0 million principal deferrals in 2020, extending the term loan until September 2022. CEO David M. Johnson emphasized EDC's support for clean-technology exporters as operations ramp up globally.

Positive

• Secured US$10 million credit facility to improve liquidity.
• No prepayment penalty or standby charge on the facility.
• EDC's continued support indicates confidence in the company's future.

Negative

• Dependence on external financing could indicate cash flow vulnerabilities.
• Amended loan reflects prior financial strain due to COVID-19.

~Strengthens liquidity to weather the impact of COVID-19~

VANCOUVER, British Columbia, July 23, 2020 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“Westport Fuel Systems” or the “Company”) (TSX:WPRT / Nasdaq:WPRT) today announced that they have closed a US$10 million term credit facility (the “facility”) from Export Development Canada (“EDC”) to bolster liquidity during the COVID-19 pandemic.

The credit facility from EDC enables the Company to make periodic requests for advances for a period of nine months from the date of the Amended and Restated Loan Agreement and has a final maturity date twelve months from the date of the Agreement. The facility’s interest rate is US Prime + 3.00% per annum on drawn amounts and has no prepayment penalty or standby charge. On March 25, 2020, the Company, in partnership with EDC, announced that it amended their existing term loan to defer 2020 principal payments of US$6.0 million and to extend the loan until September 30, 2022.

“These transactions confirm the continued strong support of Export Development Canada and their unwavering commitment to Canada’s clean-technology exporters,” said David M. Johnson, Chief Executive Officer of Westport Fuel Systems. “As our global operations ramp up production, this facility provides additional liquidity, if required. We are grateful for our long-standing partnership with EDC and the speed at which they have mobilized to help Canadian companies weather the market headwinds introduced by COVID-19.”

“EDC is proud to have supported Westport Fuel Systems’ innovation and international growth through our cleantech program for more than two years,” said Dan Mancuso, EDC’s Senior Vice President, Financing and Investments. “EDC is focused on helping all Canadian businesses navigate the challenges of the COVID-19 pandemic and providing this facility to Westport Fuel Systems supports one of Canada’s most innovative cleantech companies.”

About EDC
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, we equip Canadian companies with the tools they need – the trade knowledge, financing solutions, equity, insurance, and connections – to grow their business with confidence. Underlying all our support is a commitment to sustainable and responsible business. To help Canadian businesses facing extreme financial challenges brought on by the global response to COVID-19, the Government of Canada has expanded EDC’s domestic capabilities until December 31, 2021. This broader mandate will enable EDC to expand its support to companies focused domestically.

About Westport Fuel Systems
At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow.  We are a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen to the global automotive industry.  Our technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges.  Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America and South America, 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.

Investor Inquiries:

Shawn Severson
Investor Relations
T: +1 604-718-2046
E: invest@wfsinc.com

FAQ

What is the significance of Westport Fuel Systems' US$10 million credit facility?

The credit facility aims to strengthen liquidity during the COVID-19 pandemic.

What are the terms of the credit facility secured by WPRT?

The facility allows for advances over nine months with a final maturity of twelve months at an interest rate of US Prime + 3.00%.

How does Export Development Canada support WPRT?

EDC's support reinforces Westport's position as a leading clean-technology exporter during challenging market conditions.

What previous financial arrangements did WPRT have with EDC?

In March 2020, WPRT amended an existing loan to defer US$6.0 million in principal payments.

How might the credit facility impact WPRT's stock performance?

The facility could provide stability and confidence to investors as the company navigates financial challenges arising from the pandemic.