Aspen Aerogels enters agreement for up to $100 million loan

By Wendy Van Sickle

Columbus, Ohio, Nov. 29 – Aspen Aerogels Georgia, LLC, a wholly owned subsidiary of Aspen Aerogels, Inc., entered into a loan agreement on Nov. 28 with General Motors Holdings LLC that provides for a multi-draw senior secured term loan in a total principal amount of up to $100 million, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings are available on a delayed-draw basis from Jan. 1, 2023 to Sept. 30, 2023.

Proceeds are to be used in connection with the construction and operation of an aerogel manufacturing facility in Bulloch County, Ga.

Interest will equal term SOFR plus 800 basis points with a 1% term SOFR floor.

At the borrower’s election and prior to the issuance of a certificate of occupancy for the plant, interest may be paid-in-kind at a rate equal to term SOFR plus 900 bps with a 1% term SOFR floor.

The maturity date will be the earlier of March 31, 2025 and 90 days prior to the maturity date of any other debt facility to which the loan parties may be a party other than any revolving loan agreement.

The first $33 million of the loan will be available upon meeting various conditions, including, the receipt of an equity investment of not less than $100 million in gross proceeds by Koch Strategic Platforms, LLC. The remainder will be available upon meeting conditions, including the concurrent contribution to the borrower and disbursement of proceeds received from any equity or debt financings that is permitted under the loan agreement in an amount equal to three times the amount of such borrowing and meeting certain milestones.

Aspen Aerogels is a Northborough, Mass.-based aerogel manufacturer.

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