Commerce Energy Secures $50 Million Credit Facility
June 09 2006 - 11:52AM
PR Newswire (US)
COSTA MESA, Calif., June 9 /PRNewswire-FirstCall/ -- Commerce
Energy Group, Inc. (AMEX:EGR), a leading U.S. energy service
provider, today announced that, along with its wholly-owned
subsidiary Commerce Energy, Inc., it has entered into a $50 million
credit facility with Wachovia Capital Finance Corporation
(Western), a subsidiary of Wachovia Bank, National Association. The
facility provides for the issuance of letters of credit related to
the company's electricity and natural gas purchase activities and
for loans for working capital and general corporate purposes. The
availability of the three-year facility is subject to a defined
borrowing base consisting of the majority of the company's cash,
receivables and natural gas inventories. "This credit facility has
been a key objective for the company," said Lawrence Clayton, Jr.,
chief financial officer. Mr. Clayton added, "In addition to a new
business relationship with a major, nationally recognized bank,
this new facility will more effectively allow for the use of our
cash in support of our growth and expansion plans as they arise and
will provide for a more transparent financial statement
presentation of our cash and working capital positions." "We are
pleased to have Wachovia as a strategic banking and business
partner," stated Steven S. Boss, chief executive officer. Mr. Boss
added, "The execution of this credit facility is an important step
in our plans for expanding our market presence and increasing the
number of customers we serve." About Commerce Energy Group, Inc.
Commerce Energy Group, Inc. (AMEX:EGR) is a leading independent
U.S. electricity and natural gas marketing company, operating
through its wholly-owned subsidiaries, Commerce Energy, Inc. and
Skipping Stone, Inc. Commerce Energy, Inc. is a FERC-licensed
unregulated retail marketer of natural gas and electricity to
homeowners, commercial and industrial consumers and institutional
customers operating in nine states. Skipping Stone is an energy
consulting firm serving utilities, pipelines, merchant trading and
technology companies. For more information, visit
http://www.commerceenergygroup.com/. Contacts: Commerce Energy
Group, Inc. 600 Anton Boulevard, Suite 2000 Costa Mesa, CA 92626
Public Relations Linda Ames, Corporate Communications (800)
962-4655 Investor Relations PondelWilkinson Inc. Wade Huckabee /
Cecilia Wilkinson (310) 279-5980 Forward-Looking Statements Except
for historical information contained in this release, statements in
this release, including those of Mr. Clayton and Mr. Boss, may
constitute forward-looking statements regarding the company's
assumptions, projections, expectations, targets, intentions or
beliefs about future events. Words or phrases such as
"anticipates," "believes," "estimates," "expects," "intends,"
"plans," "predicts," "projects," "targets," "will likely result,"
"will continue," "may," "could" or similar expressions identify
forward-looking statements. Forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties, which could cause actual results or outcomes to
differ materially from those expressed. Commerce Energy cautions
that while such statements are made in good faith and the company
believes such statements are based upon reasonable assumptions,
including without limitation, management's examination of
historical operating trends, data contained in records, and other
data available from third parties, the company cannot assure that
its projections will be achieved. In addition to other factors and
matters discussed from time to time in our filings with the U.S.
Securities and Exchange Commission, or the SEC, some important
factors that could cause actual results or outcomes for Commerce
Energy Group, Inc. or its subsidiaries to differ materially from
those discussed in forward-looking statements include: the
uncertainties of litigation, arbitration or other dispute
resolution procedures, the volatility of the energy market,
competition, operating hazards, uninsured risks, failure of
performance by suppliers and transmitters, changes in general
economic conditions, seasonal weather or force majeure events that
adversely effect electricity or natural gas supply or
infrastructure, decisions by our energy suppliers requiring us to
post additional collateral for our energy purchases, increased or
unexpected competition, adverse state or federal legislation or
regulation or adverse determinations by regulators, including
failure to obtain regulatory approvals. Any forward-looking
statement speaks only as of the date on which such statement is
made, and, except as required by law, Commerce Energy Group, Inc.
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which such
statement is made or to reflect the occurrence of unanticipated
events. New factors emerge from time to time, and it is not
possible for management to predict all such factors. DATASOURCE:
Commerce Energy Group, Inc. CONTACT: Public Relations, Linda Ames,
Corporate Communications of Commerce Energy Group, Inc. ,
+1-800-962-4655; or Investor Relations, Wade Huckabee, , or Cecilia
Wilkinson, both of PondelWilkinson Inc., +1-310-279-5980, for
Commerce Energy Group, Inc. Web site:
http://www.commerceenergygroup.com/
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