Sharecafe

6K Additive Secures US$27.4 Million EXIM Loan for Manufacturing Expansion

Thumbnail
Financing to bolster U.S. production of critical materials for aerospace and defence sectors.

6K Additive Inc. (ASX: 6KA) has announced the execution of a final loan agreement with the Export-Import Bank of the United States (“EXIM”) for a US$27.4 million secured financing facility. This funding is specifically designated to support the ongoing expansion of the company’s U.S. manufacturing capacity for critical materials. 6K Additive is a US-based manufacturer and supplier of premium metal powders for additive manufacturing and alloy additions, produced from sustainable sources. Its proprietary UniMelt® microwave plasma system enables production of high-quality metal powders from domestic feedstocks, meeting stringent aerospace and defence requirements.

The EXIM Loan aims to accelerate investments in production infrastructure and capabilities at 6K Additive’s Burgettstown, Pennsylvania facility. This expansion includes four new buildings and advanced manufacturing equipment, designed to increase production of nickel, titanium, and refractory powders. Approved under EXIM’s “Make More in America Initiative” (MMIA) and in coordination with the U.S. Department of War’s Defense Production Act Title III initiative, this financing reinforces efforts to establish secure U.S. supply chains for critical materials across aerospace, defence, space, energy, and advanced manufacturing. 6K Additive CEO Frank Roberts commented that the agreement “marks an important milestone” and “reinforces the strategic importance of expanding domestic production.”

The financing facility has a six-year term and is available for drawdown through June 30, 2028. It incorporates an initial 12-month period of interest-only payments, followed by amortising principal over the subsequent five years. The loan carries a fixed Commercial Interest Reference Rate (CIRR), to be determined five business days prior to the first disbursement, with the current published rate at 5.38%. Including an 8.9% EXIM exposure fee on all disbursements, the all-in annual borrowing cost is approximately 6.86% at current published rates. A 0.5% per annum commitment fee applies to undrawn and uncancelled commitments. This agreement is a key step in advancing 6K Additive’s long-term growth strategy.

Serving up fresh finance news, marker movers & expertise.
LinkedIn
Email
X

All Categories

Subscribe

get the latest