October 30, 2017 / 12:44 PM / in a year

REC Silicon considers divestment, new equity to meet 2018 bond payment

OSLO, Oct 30 (Reuters) -

** Solar silicon maker REC Silicon’s current liquidity position is unlikely to be sufficient to meet debt maturities next year, the firm said on Monday, adding it is evaluation several alternatives, including divestment and issuing new equity

** Has bonds that mature in May and September

** Investor relations spokesman Nils Kjerstad says the firm is comfortable paying the NOK 57 million ($7 million) bond maturing in May from its existing cash flow

** Says REC has an ongoing evaluation regarding how to handle the $110 million bond maturing in September

** “We consider selling non-core asset, and as a last resort raising new equity. We do not expect the company to be debt free, so a refinancing of the bond debt is likely,” Kjerstad said

** Kjerstad said REC has hired advisers to calculate asset values and that all options are to be presented to the board in the first quarter of 2018

** REC Silicon’s cash balances increased by $16.6 million to $88 million by the end of the third quarter

** Company says must also pay $169 million in new equity if it is to maintain its 49 pct ownership in the Yulin joint venture project

** Says negotiations ongoing after postponing the Yulin payment date

** REC on Monday posted third-quarter sales above forecast, while its EBITDA earnings were largely in line. By 1235 GMT its shares traded 0.3 pct lower for the day ($1 = 8.1655 Norwegian crowns) (Reporting by Henrik Stolen, editing by Terje Solsvik)

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