Deal with Black Ink also includes 10-year warrants for 800,000 shares
By Devika Patel
Knoxville, Tenn., March 6 – Summer Energy Holdings, Inc. negotiated a $3 million second-lien term loan facility with Black Ink Energy, LLC on March 2, according to an 8-K filed Friday with the Securities and Exchange Commission.
The 15% loan is due on Sept. 2, 2016. It may be prepaid with a $300,000 penalty. The company also paid a $30,000 facility fee.
Black Ink also will receive warrants for 800,000 shares. The warrants are exercisable at $1.50 for 10 years. The strike price reflects a 114.29% premium to the Feb. 28 closing price of $0.70.
Proceeds will be used only to repay past due debt owed under a senior credit agreement with DTE Energy Trading, Inc.
The electricity provider is based in Houston.
| Issuer: | Summer Energy Holdings, Inc.
|
| Issue: | Second-lien term loan
|
| Amount: | $3 million
|
| Maturity: | Sept. 2, 2016
|
| Coupon: | 15%
|
| Call: | $300,000 penalty
|
| Warrants: | For 800,000 shares
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $1.50
|
| Investor: | Black Ink Energy, LLC
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| Fees: | $30,000
|
| Settlement date: | March 2
|
| Stock symbol: | OTCBB: SUME
|
| Stock price: | $0.70 at close Feb. 27
|
| Market capitalization: | $10.49 million
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