Fuel-Tech N.V. Pays Down Remaining Obligations to Nalco Chemical.STAMFORD, CT--(BUSINESS WIRE)--September 2, 1999--
- Receives New Financing Commitments From Bank Of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. -
Fuel-Tech N.V. (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FTEK), a world leader in air pollution control technology, announced today that it has satisfied its remaining financial obligations to Nalco Chemical Company (NYSE NYSE
See: New York Stock Exchange :NLC NLC National League of Cities
NLC National Library of Canada
NLC National Library of China
NLC Northern Lights College (British Columbia, Canada)
NLC North Lake College (Irving, Texas) ) relating to relating to relate prep → concernant
relating to relate prep → bezüglich +gen, mit Bezug auf +acc Fuel Tech's acquisition of Nalco Fuel Tech (NFT NFT - Network File Transfer. An INTERLINK command on CERNVM. ), a former 50 percent- owned joint venture of Fuel Tech and Nalco Chemical, and has received a commitment from Bank of America for $4.5 million of financing.
Terms of the NFT acquisition, which was completed on May 1, 1998, called for Fuel Tech to pay Nalco Chemical $1.1 million in cash, $3 million in notes and up to $5.5 million in contingent payments based on Fuel Tech's future performance. Fuel Tech paid the $1.1 million in cash at the time the transaction was completed. Effective September 1, 1999, Fuel Tech has paid Nalco Chemical the $2.5 million remaining balance of the $3 million note, plus accrued interest Accrued Interest
The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date.
There are two methods for calculating accrued interest:
1) 360-day year method, used for corporate and municipal bonds. , and Nalco Chemical has accepted approximately $2 million as payment in full for the $5.4 million still owed on the contingent payments.
At the same time, Bank of America has agreed to increase Fuel Tech's working capital credit line to $3 million from $2 million, expanding the Bank's financing commitment to FuelTech to a total of $7.5 million.
Ralph E. Bailey, chairman of Fuel Tech, said, "We welcomed the opportunity to pay down a major portion of our outstanding debt on favorable terms. The Bank of America term loan carries significantly more favorable terms than the Nalco debt, including a lower interest rate and less restrictive covenants Restrictive covenants
Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. . We are especially pleased to have purchased the contingent payment obligation at such a steep discount to face value. With these transactions, we are consolidating our debt obligations (on- and off-balance sheet) and increasing our financial flexibility in investment and/or capital-raising transactions. Fuel Tech continues to enjoy an excellent relationship with Nalco."
Fuel-Tech N.V. is engaged in the development and commercialization of proprietary air pollution control technologies. Its NOxOUT(R) Process is a proven technology that has established Fuel Tech as the leader in post-combustion nitrogen oxide Noun 1. nitrogen oxide - any of several oxides of nitrogen formed by the action of nitric acid on oxidizable materials; present in car exhausts
pollutant - waste matter that contaminates the water or air or soil (NOx) control systems. New technologies based on the NOxOUT(R) Process have also been developed to improve boiler efficiency. The Company's technologies are currently installed at more than 250 combustion units worldwide. For more information, visit Fuel Tech's web site at www.fueltechnv.com.
This press release contains statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that Fuel Tech files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements.