Advanced Emissions Solutions secures $15 million six-month term loan

By Lisa Kerner

Charlotte, N.C., Oct. 26 – Advanced Emissions Solutions, Inc. closed a six-month $15 million 10.5% term loan on Oct. 22 under a credit agreement with Wilmington Trust, NA, according to a form 8-K filed with the Securities and Exchange Commission.

The loan will mature six months after the closing date, subject to a three-month extension at the company’s option if certain conditions are met.

Franklin Mutual Quest Fund and MFP Investors LLC, the initial lenders under the credit agreement, are also beneficial owners of securities in the company.

Advanced Emissions announced in August that it was negotiating a bridge loan to ensure that it has ample liquidity while it completes its restatement and re-audit efforts, delivers on its existing ACI and DSI contracts, and executes on other corporate and organizational initiatives.

At the end of each calendar month, starting on October 30, principal on the term loan will begin to amortize in accordance with the amortization schedule attached to the credit agreement, the filing stated.

The loan may be voluntarily prepaid, subject to a prepayment premium of 4%.

Under the terms of the credit agreement, Advanced Emissions is required to maintain a minimum unrestricted cash balance of $3 million at all times.

“We believe the company now has ample liquidity to execute on its initiatives and contracts until it receives additional distributions from the Refined Coal business and can release the cash collateralized letters of credit,” said president and chief executive officer L. Heath Sampson.

Advanced Emissions, based in Highlands Ranch, Colo., provides emissions services to the power generation industry.

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