- 01EXIM loan: US$27.4m for Burgettstown expansion.
- 02Six-year facility; 12 mo interest-only then amortise.
- 03MMIA/Title III backs domestic critical-materials supply.
6K Additive (ASX: 6KA) has executed a final US$27.4 million secured loan agreement with the Export-Import Bank of the United States (EXIM) to support expansion of its manufacturing capacity in Burgettstown, Pennsylvania, for critical materials used in advanced applications.
Available for drawdown through 30 June 2028, the six-year facility begins with 12 months of interest-only payments before principal amortisation over the remaining five years.
Proceeds are immediately available to reimburse 6K Additive for ongoing purchases of equipment and infrastructure tied to the Burgettstown expansion designed to increase nickel, titanium and refractory powder production.
The financing was approved under the Make More in America Initiative (MMIA) in coordination with the US Department of War’s Defense Production Act Title III initiative, supporting additional domestic capacity for critical materials.
Pennsylvania Expansion Funding
The expansion includes construction of four new buildings and acquisition of further advanced manufacturing equipment intended to meet growing demand from next-generation defence systems, commercial aerospace, advanced energy technologies and industrial applications.
6K Additive produces materials including titanium, tungsten, C-103, nickel alloys and other advanced metal powders for additive manufacturing and alloy applications using its UniMelt technology at the Pennsylvania operation.
The UniMelt process uses qualified domestic feedstocks to manufacture premium metal powders while meeting stringent quality, traceability and procurement compliance requirements sought by aerospace and defence customers.
“Finalising this agreement with EXIM marks an important milestone for 6K Additive and reinforces the strategic importance of expanding domestic production of the critical materials essential to America’s defense and advanced manufacturing industries,” chief executive officer Frank Roberts said.
“This investment directly […] provides 6K Additive with the funding required to execute our planned capacity expansion while preserving our existing capital to support continued growth.”
Fixed Commercial Rate
The facility will carry a fixed commercial interest reference rate (CIRR), to be determined five business days before the first disbursement, with the currently published CIRR standing at 5.38%.
Up to US$25.2m will fund eligible project costs and up to US$2.2m will finance an 8.9% EXIM exposure fee on disbursements, producing an estimated all-in annual borrowing cost of about 6.86% at current published rates.
An additional commitment fee of 0.5% per annum applies to undrawn and uncancelled commitments during the drawdown period.
The loan was the first transaction of its kind approved in coordination with the Defense Production Act Title III initiative, and the largest MMIA loan supporting advanced materials and manufacturing.
“We greatly appreciate EXIM chair John Jovanovic’s leadership and support in bringing this agreement to completion,” Mr Roberts added.
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