Company completes financing as condition for refinancing its bank debt
By Devika Patel
Knoxville, Tenn., Nov. 8 - Enservco Corp. settled a $2 million private placement of units on Nov. 2, according to an 8-K filed Thursday with the Securities and Exchange Commission. The company was required to raise at least $1.25 million before settling a refinancing of its credit agreement with PNC Bank NA.
The company sold 5,699.428 units of 1,000 common shares and warrants for 500 shares at $350.00 per unit.
The warrants are exercisable at $0.55 until Nov. 30, 2017. The strike price reflects a 57.14% premium to the Nov. 1 closing share price of $0.35.
President and chief financial officer Rick D. Kasch purchased 75 units for $26,250. The company paid commissions to Kuhn's Brothers Securities Corp. and Palladium Capital Advisors, LLC.
The company also refinanced nearly all of its debt with Great Western Bank, with the exception of a $696,398 real estate loan for a facility in North Dakota.
The new $16 million senior secured debt with PNC Bank consists of an $11 million term loan and a $5 million revolving credit facility. Interest on the loan is equal to the Base rate plus 125 basis points or one-, two- or three-month Libor plus 325 bps or 425 bps.
The loan amortizes on a seven-year, straight-line basis of equal monthly payments of $130,952, with the remaining principal due at maturity on Nov. 2, 2015.
Based in Colorado Springs, Colo., Enservco provides oil field services to the domestic onshore oil and natural gas industry.
| Issuer: | Enservco Corp.
|
| Issue: | Units of 1,000 common shares and warrants for 500 shares
|
| Amount: | $1,994,800
|
| Units: | 5,699.428
|
| Price: | $350.00
|
| Warrants: | Warrants for 500 shares per unit
|
| Warrant expiration: | Nov. 30, 2017
|
| Warrant strike price: | $0.55
|
| Investor: | Rick D. Kasch (for $26,250)
|
| Settlement date: | Nov. 2
|
| Stock symbol: | OTCBB: ENSV
|
| Stock price: | $0.35 at close Nov. 1
|
| Market capitalization: | $9.8 million
|
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