A-Mark unit sells $100 million in two parts; Saturn Oil eyes $20 million revolver

By Devika Patel

Knoxville, Tenn., Sept. 14 –The week ended with two private placements reported.

A-Mark Precious Metals, Inc., a Santa Monica, Calif.-based precious metals dealer, reported that subsidiary AM Capital Funding, LLC completed a $100 million private placement of secured senior term notes and secured subordinated term notes.

Meanwhile, Saskatoon, Sask.-based public energy company Saturn Oil & Gas Inc. secured a $20 million secured revolving note facility with warrants for 30,505,122 common shares.

AM Capital Funding settled a $100 million private placement of notes due Dec. 15, 2023 in two tranches.

The company sold 4.98% secured senior term notes, series 2018-1, class A, for $72 million and 5.98% secured subordinated term notes, series 2018-1, class B, for $28 million.

The notes are backed by precious metals and loans secured by precious metals.

Saturn said it has agreed to a $20 million secured revolving note facility due Sept. 14, 2022 with Prudential Capital Energy Partners. It has already raised about $4.6 million.

The notes offer a combined average coupon rate of approximately 15% per year.

Saturn may elect to satisfy up to 2% of the interest through PIK notes, which will be substantially similar to the revolving notes.

Prudential also received warrants for 30,505,122 shares, each exercisable at C$0.235, equal to the closing price of the company's shares (TSX Venture: SOIL) on Sept. 13.

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