Xinergy Ltd. receives US $20 million financing commitment
Toronto Stock Exchange: XRG
KNOXVILLE, TN, July 27, 2012 /PRNewswire/ - Xinergy Ltd., (TSX: XRG) ("Xinergy" or the "Company"), a Central Appalachian coal producer, announced today that it has secured a $20 million financing commitment from Marret Asset Management Inc. ("Marret") on behalf of various funds under its management (the "Lenders"). The financing commitment contemplates an issuance of US $20 million in principal amount of first lien senior secured notes, which notes would bear interest at a rate of 9.875% per annum, have a three year term and be issued at an original issue discount of 98% of face value.
In consideration for the financing commitment, Xinergy has agreed to pay the Lenders $200,000 and issue to the Lenders one million common share purchase warrants with a five year term and a strike price of CDN $1.20 per share. If the financing closes, the Company will issue to the Lenders an additional 500,000 common share purchase warrants with a five year term and a strike price equal to 120% of the volume weighted average trading price of Xinergy's common shares for the five day period immediately prior to the Company's delivery of notice to Marret of its intention to issue the notes.
Closing of the financing is subject to customary closing conditions, and issuance of the warrants is subject to Toronto Stock Exchange approval.
About Xinergy Ltd.
Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly owned subsidiary Xinergy Corp. and its subsidiaries, is engaged in coal mining in eastern Kentucky, West Virginia and Virginia. Xinergy sells high quality thermal and metallurgical coal to electric utilities, steelmakers and industrial companies. For more information, please visit www.xinergycorp.com.
This release contains "forward-looking information" relating to offering of the Notes. Forward-looking information should not be read as a guarantee of future performance and will not necessarily be accurate indications of the times at, or by which, that performance will be achieved. There are several risks that could cause actual performance to differ materially from those expressed in or suggested by the forward-looking information which are more fully described in Xinergy Ltd.'s filings with the Canadian Securities Administrators, including its Annual Information Form for the year ended December 31, 2011, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information. We assume no obligation to update forward-looking information, except to the extent required by applicable securities laws.
SOURCE Xinergy Ltd.
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