Fuel-Tech N.V. Pays Down Remaining Obligations to Nalco Chemical.
- Receives New Financing Commitments From Bank Of America -
Fuel-Tech N.V. (NASDAQ: FTEK), a world leader in air pollution control technology, announced today that it has satisfied its remaining financial obligations to Nalco Chemical Company (NYSE:NLC) relating to Fuel Tech's acquisition of Nalco Fuel Tech (NFT), 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, 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. 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 (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.
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|Date:||Sep 2, 1999|
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