BioAmber restructures its credit facility with its senior lenders

MONTREAL, Jan. 26, 2018 /PRNewswire/ - BioAmber Inc.  (NYSE: BIOA) (TSX: BIOA), a leader in renewable materials, today announced that its Canadian subsidiary BioAmber Sarnia Inc. (the "company"), has entered into a waiver and amending agreement to its current loan agreement with its senior lending syndicate.

This amendment to the loan agreement removes certain financial covenants under the terms of the loan agreement with the senior lenders, namely a minimum cash requirement and ongoing revenue covenants. 

The senior lenders have also agreed to waive all violations under the loan agreement and the company has agreed to present to the lenders a recapitalization plan by March 15, 2018. In the amendment , the company undertakes  (i) to engage a consultant to monitor its cash flows and to provide to the lenders weekly reports on its activities and monthly financial reports, (ii) to engage an appraiser to conduct a valuation of its Sarnia facility before January 31, 2018, (iii) to postpone any interest and capital payments to its subordinated lenders to the earliest to occur of December 31, 2018, the time at which the secured obligations under the loan agreement are paid in full, and such other date as may be agreed to by the required lenders under the loan agreement, and (iv) not to increase senior management compensation arrangements or pay bonuses to the senior management team, nor make payments other than as contemplated by the company's weekly cash flow projections.

"Our lending syndicate has been a key supporter of BioAmber from the construction phase through to today.  These amendments eliminate certain restrictive financial covenants that we had in our loan agreement, release a minimum cash requirement and support the overall growth of our business," said Richard Eno, Chief Executive Officer, BioAmber Inc.

About BioAmber

BioAmber (NYSE: BIOA, TSX: BIOA) is a renewable materials company. Its innovative technology platform combines biotechnology and catalysis to convert renewable feedstock into building block materials that are used in a wide variety of everyday products including plastics, paints, textiles, food additives and personal care products.  For more information visit www.bio-amber.com

Forward-Looking Statements

This press release contains forward-looking statements, which are subject to substantial risks, uncertainties and assumptions. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may" or similar expressions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the events and circumstances reflected in the forward-looking statements will be achieved or occur and the timing of events and circumstances and actual results could differ materially from those projected in the forward- looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.   For additional disclosure regarding these and other risks faced by BioAmber, see disclosures contained in BioAmber's public filings with the SEC and in Canada on SEDAR, including the "Risk Factors" section of BioAmber's Annual Report on Form 10-K and the most recent quarterly report on Form 10-Q.

SOURCE BioAmber Inc.