6K Additive (ASX: 6KA) has closed a US$27.4 million secured financing facility with the Export-Import Bank of the United States, earmarked for expanding its Burgettstown, Pennsylvania manufacturing site. The build-out covers four new buildings and additional equipment aimed at lifting output of nickel, titanium and refractory powders, the metal feedstocks 6K Additive produces for aerospace and defence buyers using its UniMelt microwave plasma system.
The loan comes through EXIM’s “Make More in America Initiative” and is coordinated with the U.S. Department of War’s Defense Production Act Title III program, framing it as part of a push to build domestic supply for critical materials in aerospace, defence, space and energy manufacturing. That’s consistent with 6K Additive’s existing customer base: the company’s $10.8 million Nickel 718 powder supply deal with ADDMAN, which also includes a revert buy-back arrangement, already put it in the aerospace alloy supply chain (see our earlier coverage of the 6K Additive-ADDMAN nickel powder deal).
| Term | Detail |
|---|---|
| Facility size | US$27.4 million |
| Term | 6 years, drawdown available through June 30, 2028 |
| Rate structure | 12 months interest-only, then 5 years amortizing |
| Base rate | Fixed CIRR, currently 5.38% |
| EXIM exposure fee | 8.9% of all disbursements |
| All-in cost | approx. 6.86% annually at current rates |
| Commitment fee | 0.5% per annum on undrawn amounts |
The all-in borrowing cost near 6.86% and the 8.9% exposure fee are notable line items for a government-backed facility; EXIM’s structure effectively prices in a premium on top of the headline CIRR rate. CEO Frank Roberts called the agreement “an important milestone,” per the company’s statement, but 6K Additive has not disclosed the expansion’s total capital cost, how much of it this loan covers, a completion date for the four buildings, or current versus planned production capacity in tons per year for nickel, titanium and refractory powders.