Amaero International Limited (ASX:3DA) Secures A$38 Million Loan
Loan Approval Details
Amaero International Limited (ASX:3DA) has secured a direct loan of US$23.5 million, approximately A$37.8 million, from the Export-Import Bank of the United States (EXIM). The loan aims to support Amaero Advanced Materials & Manufacturing Inc., the company’s U.S. subsidiary, in sourcing capital equipment. This agreement highlights EXIM’s commitment to bolstering U.S. manufacturing capabilities through its Make More in America initiative.
Importance of the Loan
This loan represents EXIM’s sixth approval under the MMIA and notably supports advanced materials and additive manufacturing. Amaero aims to enhance the resiliency and scalability of domestic manufacturing, reflecting a strategic alignment with national security initiatives. With a planned investment of approximately US$50 million into capital equipment and facility improvements, the loan is expected to facilitate the creation of 150 skilled jobs in the U.S.
Financial Structure
The loan is structured as a 75% loan-to-cost advance for equipment installed at Amaero’s headquarters in McDonald, Tennessee, with a drawdown period over five quarters starting in the fourth quarter of FY2025. It includes a 12-month interest-only phase followed by amortizing payments over seven years, with an estimated annual cost of capital of 6.95%.
Executive Comments
Hank J. Holland, Chairman and CEO of Amaero, remarked, “This is a very important milestone event for Amaero. Non-dilutive, U.S. government-funded support is an important signal to the market that validates the alignment of Amaero’s strategy and capability with the United States’ priority policy initiatives.” He emphasised the critical need to address gaps in domestic manufacturing capabilities to bolster national security.
Reta Jo Lewis, President and Board Chair of EXIM, also commented, “With EXIM’s bipartisan Board of Director’s unanimous approval of the $23.5 million loan to Amaero, we are underscoring EXIM’s commitment to re-shoring and re-building more resilient domestic manufacturing.”
Future Outlook
Amaero plans to leverage this funding to solidify its position. The company anticipates drawing capital and improving its manufacturing capabilities through proactive investments in technology and infrastructure.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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