Sydney, Australia – 26 February 2025 – Amaero International Limited (ASX:3DA) is pleased to announce that it has executed a credit agreement for a US$22.8 million direct loan from the Export-Import Bank of the United States ("EXIM"). Key Highlights
Amaero has executed a credit agreement for a US$22.8 million loan from Export-Import Bank (EXIM).
A fixed interest rate of 5.43% per annum was locked upon execution of the credit agreement. The total loan cost equals approximately 7.05% per annum over an 8-year term, providing an attractive and flexible funding source for Amaero.
Following completion of the first tranche of the recent A$22 million capital raise, Amaero has satisfied a key condition precedent required prior to first draw of the EXIM loan.
Amaero's EXIM loan is the sixth Make More in America (MMIA) loan to be approved and the first MMIA loan that supports advanced materials and additive manufacturing, an important signal of U.S. government support to the capital markets and commercial customers.
Hank J. Holland, Amaero Chairman and CEO, commented:
"Fully funding our planned capital expenditures and expected operating losses through EBITDA breakeven 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. The direct loan of US$22.8 million from EXIM coupled with a series of equity capital raises since May 2022 that totaled approximately US$64.5 million have positioned Amaero with a strong balance sheet and with sufficient liquidity to fund planned capital expenditures and to fund operating losses through achieving expected EBITDA breakeven in FY2026.
Amaero has intentionally pursued a corporate strategy that addresses critical gaps in U.S. domestic manufacturing and supply chain capabilities. Improving the resiliency and scalability of domestic manufacturing throughput is an imperative for both national security and for economic prosperity. After decades of offshoring manufacturing to lower cost countries, the United States has atrophied domestic manufacturing capability, has created critical vulnerabilities in domestic supply chains and has lost approximately 7.1 million skilled, highly paid manufacturing jobs.
We are gratified to see President Trump's swift actions, including Executive Orders, that prioritize policy initiatives that strengthen national security, strengthen sovereign capabilities, address domestic manufacturing and supply chain vulnerabilities, promote domestic economic development and support small businesses. Amaero's capabilities and its differentiated market position align with U.S. national interests and with priority policy initiatives."
Background on EXIM Loan
The U.S. federal government credit agency will provide capital equipment financing and will directly fund the loan as part of EXIM's Make More in America initiative ("MMIA") that was established to address the longer-term weaknesses in the United States' supply chains, the result of decades of underinvestment, outsourcing, and offshoring instead of investment in long-term security, sustainability, and resilience. The financing also falls under EXIM's China and Transformational Exports Program ("CTEP"). Amaero's loan is the sixth MMIA loan to be approved and the first MMIA loan that supports advanced materials and additive manufacturing.
This direct loan serves as an important signal to the capital markets and commercial customers, reinforcing that Amaero's business is positioned at the nexus of strategically important U.S. policy initiatives focused on enhancing the resiliency and scalability of manufacturing and supply chain capabilities. EXIM's loan provides a demonstrable commitment by the U.S. government that reaffirms the strategic importance of Amaero's capabilities to national security and to economic policy.
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About Amaero International Limited
Amaero International Limited (ASX:3DA) is an ASX-listed company with manufacturing and corporate headquarters located in Tennessee, USA. Amaero is a leading U.S. domestic producer of high-value C103, refractory alloy, and titanium powders for additive and advanced manufacturing of components utilised by the defense, space, and aviation industries. The technical and manufacturing team brings decades of experience and know-how with pioneering work in gas atomization of refractory and titanium alloys. The Company has commissioned advanced gas atomization technology with an industry leading yield of AM powder. The Company is also a leader in PM-HIP (Powder Metallurgy-Hot Isostatic Pressing) manufacturing of large, near-net-shape powder metallurgy parts with forged-like material properties and microstructure for a variety of alloys. PM-HIP manufacturing is helping alleviate the strained domestic supply chain for large scale castings and forgings.
