Raser signs US$ 15 million credit agreement
Alexander Richter
1 Feb 2009
Raser Technologies, Inc. has signed a line of credit agreement, pursuant to which Raser may borrow up to US$15 million. Raser signed the credit agreement with a syndicate of four lenders, including an entity controlled by the company's chairman.
Company announcement: Raser Technologies, Inc. (NYSE: RZ) has signed a line of credit agreement, pursuant to which Raser may borrow up to US$15 million. Raser signed the credit agreement with a syndicate of four lenders, including an entity controlled by the company’s chairman, Kraig Higginson.
The company obtained the line of credit in order to provide working capital for general corporate purposes. The company expects that borrowings under the line of credit will be repaid primarily with proceeds from other financing arrangements the company intends to close in connection with the development of its geothermal power projects.
Under the agreement, advances to Raser are subject to the final approval of the lenders and accrue interest at the rate of 10 percent per annum. Unless the lenders agree to a later date, the line of credit will mature and amounts borrowed must be repaid by Nov. 15, 2009 or earlier if certain financing arrangements for the development of Raser’s geothermal power projects are completed and put in place.
Source: Company announcement
