Enservco reaches agreement with lender to change its principal

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  • Total Bank debt reduced by $ 16 million – from aboutmate $33 million To approximately $17 million
  • The transaction results in $17.5 million to augment in sequity when included with the chair recent investment fund conversion of $ 1.5 million of subordinated debt and accrued interest into Enservco limit ordinary actions
  • Business preparing for expected seasonal to augment in activity during next heating season

DENVER, Sep 28, 2020 (GLOBE NEWSWIRE) – Enservco Corporation (NYSE American: ENSV), a diverse national provider of specialized well site services for the conventional and unconventional onshore oil and gas industries, today announced that it has closed its refinancing agreement with East West Bank (“ISF”).

The refinancing significantly strengthens Enservco’s balance sheet by cutting its bank debt by almost half and increasing equity by approximately $ 17.5 million.

“We are extremely pleased to have finalized this transformational agreement with ISF which not only creates a more viable financial structure, but also adds ISF as a major shareholder,” said Executive Chairman Rich Murphy, whose investment firm, Cross River Partners, is the partner of Enservco. main shareholder. “With this long process now behind us, we are delighted to refocus all of our attention on the development of our business. We are preparing to respond to an expected seasonal increase in demand during our fourth quarter of 2020 and the first quarter of 2021, when Enservco generates the majority of its revenue and profitability. “

The new financing includes a $ 17 million term loan and a $ 1 million revolving line of credit for working capital with no initial balance – both with due dates October 15, 2021. The term loan only carries interest with potential for principal repayment in the event that Enservco achieves certain profit measures. In exchange for the $ 16 million debt reduction, Enservco issued to EWB eight million restricted common shares that will not be tradable for six months and 15 million warrants exercisable at 0.25. $ per share from October 15, 2021 to October 15. , 2026. Full details of the refinancing are available on Form 8-K filed by Enservco with the SEC on September 28, 2020.

About Enservco

Through its various operating subsidiaries, Enservco provides a wide range of petroleum services, including hot oiling, acidification, fracturing water heating and related services. The Company has a large geographic footprint spanning seven major national oil and gas basins and serves customers in Colorado, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Ohio, Texas, Wyoming and West Virginia. Further information is available at www.enservco.com

Caution Regarding Forward-Looking Statements

This press release contains “forward-looking” information to the extent that it describes events and conditions that Enservco reasonably expects to occur in the future. Expectations regarding the future performance of Enservco depend on a number of factors, and there can be no assurance that Enservco will achieve the results contemplated herein. Certain statements contained in this press release using the terms “may”, “intention”, “expects” and other terms indicating future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond Enservco’s ability to predict or control and which may cause actual results to differ materially from projections or estimates. contained in this document. These risks include those set out in Enservco’s annual report on Form 10-K for the fiscal year ended December 31, 2019, and subsequent filings with the SEC. Forward-looking statements contained in this press release that are subject to risks include the transformative potential of the transaction, the short-term nature of the revised financing, the expectation of increased customer demand and the ability to develop the business or raise additional capital. . It is important that everyone reviewing this press release understands the material risks associated with Enservco’s operations. Enservco disclaims any obligation to update any forward-looking statement made here, except as required by law.

Contacts:

Jay pfeiffer
Pfeiffer High Investor Relations, Inc.
Telephone: 303-880-9000
Email: [email protected]

Marjorie Hargrave
Financial director
Enservco Company
[email protected]

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