By Lisa Kerner
Charlotte, N.C., Oct. 1 - USA Synthetic Fuel Corp. subsidiary Lima Energy Co. issued $30 million of 10% senior notes due 2015 on Sept. 24.
The notes were issued to Third Eye Capital Corp., as administrative agent for the noteholders, according to an 8-K filing with the Securities and Exchange Commission.
Interest is payable monthly.
The issue was part of a $35 million debt financing transaction with Third Eye.
As part of the transaction, USA Synthetic issued 3.6 million shares of its common stock to Global Energy, Inc.
Lima used the proceeds from the notes to repay Global Energy notes.
Proceeds from the debt and equity issue were used by USA Synthetic to purchase about 50 million tons of Illinois basin coal resources, reserves and other mineral interests located in Indiana.
Lima Energy will use the balance of the proceeds to purchase land for a project to develop, own and operate gasification and synthetic energy production facilities, to pay expenses related to its Lima Project, and for working capital and general corporate purposes.
The note purchase agreement limits USA Synthetic and Lima's ability to incur debt, make capital expenditures or acquisitions or transfer their assets, among other restrictions.
Cincinnati's USA Synthetic is a provider of clean energy systems.
| Issuer: | Lima Energy Co.
|
| Issue: | Senior notes
|
| Amount: | $30 million
|
| Coupon: | 10%, payable monthly
|
| Maturity: | Aug. 31, 2015
|
| Settlement date: | Sept. 24
|
| Distribution: | Private placement
|
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