LDK Solar Co., Ltd., a vertically integrated manufacturer of photovoltaic products, announced on November 21st that its onshore subsidiary, Jiangxi LDK Solar Hi-Tech Co., Ltd., signed a framework agreement on November 11, 2013 with a syndicate of 11 commercial banks in China for a credit facility in the aggregate principal amount of RMB 1.56 billion. The use of proceeds of the credit facility is strictly limited to financing LDK Solar's onshore operations within Jiangxi Province, and may not be used to service any existing indebtedness, whether onshore or offshore. The facility will terminate on November 10, 2016, and each loan under the facility may not have a maturity date later than such termination date. Each drawdown under the facility will be made in the absolute discretion of the syndicate and will be subject to additional conditions (including early repayment) imposed by the syndicate on a draw-specific basis. The syndicate has designated a working group to monitor the use of the funds and controlled bank accounts arrangements will be implemented. The facility and any of its outstanding loans are guaranteed by LDK Solar's onshore subsidiaries, Jiangxi LDK PV Silicon Technology Co., Ltd., Jiangxi LDK Solar Polysilicon Co., Ltd., LDK Solar Hi-Tech (Xinyu) Co., Ltd. and LDK Solar Hi-Tech (Nanchang) Co., Ltd., and by Peng Xiaofeng and his wife. The first drawdown of RMB 200 million was approved and completed on November 21, 2013.
"We are pleased to enter this financing arrangement with the banking syndicate in China," stated Sam Tong, President and CEO of LDK Solar. "While we are beginning to experience improvements in our business operations, we believe this discretionary loan facility will provide LDK Solar with the necessary support to ramp up our manufacturing operations of polysilicon, wafers, cells and modules in Jiangxi Province when business circumstances so permit. When the global solar industry regains strength, we are committed to taking advantage of new opportunities that emerge."