Company sells 1,046,875 common shares at $3.20 per share in offering
By Devika Patel
Knoxville, Tenn., Oct. 19 – Aly Energy Services, Inc. said it completed a $3.35 million private placement of stock on Sept. 30.
The company sold 1,046,875 common shares at $3.20 apiece, an 8.57% discount to the $3.50 closing share price on Oct. 18.
Proceeds were used to reduce $3.35 million of debt under the company’s credit facility in connection with an amendment that waives the company’s June 30 default and modifies the financial covenants to reflect the anticipated impact of the downturn in the oilfield services industry on the company’s financial performance.
The amendment also waives all further principal payments on the remaining $20.1 million of debt until March 31, 2017 and reduces the size of the revolving credit facility to $1 million. As of Sept. 30, the company had a borrowing capacity of $1 million under the revolver in addition to a cash balance in excess of $1 million.
The Houston company provides equipment and rig-up services on oil and petroleum well sites.
| Issuer: | Aly Energy Services, Inc.
|
| Issue: | Common stock
|
| Amount: | $3.35 million
|
| Shares: | 1,046,875
|
| Price: | $3.20
|
| Warrants: | No
|
| Announcement date: | Oct. 19
|
| Settlement date: | Sept. 30
|
| Stock symbol: | OTCBB: ALYE
|
| Stock price: | $3.50 at close Oct. 18
|
| Market capitalization: | $19.81 million
|
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