Divergent Energy - DVG.v
Posted: Wednesday May 27 11:21:16AM 2015
Posted: Wednesday Jul 2 9:07:14AM 2014
this is the new name for OTS.v - new LOC announced this morning giving the company new avenue for growth. Expecting news on new linear pump regarding pilot test. Caruso.
Divergent Energy arranges $17.5-million credit facility
2014-07-02 09:13 ET - News Release
Mr. Ken Berg reports
DIVERGENT ENERGY SERVICES CORP. ANNOUNCES SECURED REVOLVING CREDIT FACILITY (CAD$17.5 MILLION)
Divergent Energy Services Corp. has secured a $17.5-million revolving credit facility subject to the successful completion of outstanding due diligence, legal documentation by the lender, satisfaction of other conditions precedent in favour of the lender, debentureholder approval and release of its general security agreement over the assets of the corporation, regulatory approvals, and approval from the corporation's board of directors.
The revolving credit facility, which will be renewed annually, will have a one-year term and will have a first charge over the assets of the corporation. The facility will consist of two tranches, each of which will be subject to certain conditions being met prior to advancement to the corporation:
- Facility A: $10-million will be available for pipe and pump projects in Canada, United States and Mexico, and it will be margined against inventory and accounts receivable;
- Facility B: $7.5-million will be available for eligible construction financing and management projects in Mexico, and it will be margined against the outstanding advances provided by the corporation.
Interest on amounts drawn will be payable monthly at the rate of 14 per cent per annum, with a standby rate of 1 per cent per annum on the unused portion. Payment of the outstanding principal amount will be made prior to or at the end of the term. In addition, the corporation is to pay a facility fee of 1 per cent of the facility initially and 2 per cent of the facility at the end of the term.
The corporation will be required to pay a 2-per-cent finder's fee of the eligible facility to an unrelated third party over the term of the facility.
The facility will be used for expansion opportunities in all three of the corporation's operating segments: pump sales and service, pipe sales and installation, and project management and finance.
We seek Safe Harbor.