Hoku Corporation Announces Term Extension of $50 Million Loans
News Release from Hoku Corp
HONOLULU, HI -- (MARKET WIRE) -- 02/06/12 -- Hoku Corporation (NASDAQ: HOKU), a solar energy products and services company, today announced the extension of the maturity date of $50 million in loans from Tianwei New Energy Holdings Co., Ltd., a leading provider of silicon wafers, photovoltaic (PV) cells, modules and systems, and Hoku's majority shareholder.
As part of Tianwei's 2009 investment in Hoku, Tianwei provided Hoku with two loans during the first calendar quarter of 2010 totaling $50 million through China Construction Bank, acting as loan agent. The term of each loan is two years. With approval from China's State Administration of Foreign Exchange (SAFE), the maturity date of the $20 million and $30 million loans, scheduled to mature this quarter, have been extended one year until the first quarter of calendar year 2013. According to the SAFE approval, Tianwei and China Construction Bank are preauthorized to subsequently extend the maturity date for another year, until the first quarter of 2014.
"The extension of the loans reaffirms Tianwei's continuing commitment to Hoku's long-term success," said Scott Paul, CEO of Hoku Corporation. "Although the extension does not provide Hoku with any additional cash, it does allow us to better manage our liquidity, as we would otherwise be obligated to pay $50 million to Tianwei this quarter. As we source additional funds, our first priority is to pay our polysilicon plant vendors, and to continue with plant commissioning activities."
About Hoku Corporation
Hoku Corporation (NASDAQ: HOKU) is a solar energy products and services company with three business units: Hoku Materials, Hoku Solar, and Tianwei Solar USA, Inc. Hoku Materials markets and sells polysilicon for the solar market from its plant under construction in Pocatello, Idaho. Hoku Solar markets and installs turnkey photovoltaic systems and provides related services. Tianwei Solar USA markets and sells photovoltaic modules manufactured by Tianwei New Energy. Hoku Corporation is a majority owned subsidiary of Tianwei New Energy Holdings Co., Ltd. For more information, visit www.hokucorp.com.