23 February 2009 10:30 [Source: ICIS news]
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SINGAPORE (ICIS news)--NOVA Chemicals has secured $150m (€117m) in new financing through a revolving credit facility with Export Development Canada (EDC) and a syndicate of three Canadian banks, the company said in a statement on Monday.
NOVA did not identify any of the three Canadian banks.
The Canada-based chemicals producer had a deadline of 28 February to raise $100m in funds to retain access to its current credit facilities.
Earlier this month NOVA’s bank group voted to provide covenant relief to the company in the first half of 2009, but had asked NOVA to come up with $200m in new financing over the first half of the year.
This was then followed by hefty credit rating cuts by all three international credit watch-dogs, Moody’s, Standard and Poor’s and Fitch Ratings.
"This is a very big step toward ensuring NOVA Chemicals' financial position remains solid through this challenging period. We are particularly pleased to add EDC as a new lender to our financing mix," said Larry MacDonald, the company’s chief financial officer.
NOVA Chemicals posted a net loss of $214m for the fourth quarter ended 31 December 2008 on falling margins, sharp price reductions and lower sales volume.
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