Vertex Energy Shares Drop 18% After Senior Notes Offering
By Chris Wack
Vertex Energy Inc. shares were down 18% to $4.38 Tuesday after
the company said it intends to offer $155 million of its
convertible senior notes due 2027 in a private offering.
The company said the notes will be senior unsecured obligations,
will be issued at a price equal to 90% of the face amount of each
note and will accrue interest payable semiannually in arrears.
The notes will be convertible into cash, shares of common stock
or a combination of cash and shares of stock at the company's
election. The interest rate, initial conversion rate, redemption
rights and other terms of the notes will be determined at the time
of pricing of the offering.
Vertex said it intends to use $33.7 million of the proceeds to
fund a portion of the funds payable in connection with the
previously disclosed, pending acquisition by Vertex Energy of a
refinery located in Mobile, Ala.. It said it plans to use $13
million for certain engineering services and for the initial
payments of purchase orders for long lead-time equipment associated
with a capital project designed to modify the Mobile refinery's
hydrocracking unit to produce renewable diesel in advance of the
purchase, and $10.9 million to repay amounts owed by the company
under its credit facilities with Encina Business Credit LLC and
certain of its affiliates. It said it plans to use $400,000 to
repay certain secured equipment leases with certain affiliates of
Wells Fargo Bank.
Write to Chris Wack at firstname.lastname@example.org
(END) Dow Jones Newswires
October 26, 2021 10:27 ET (14:27 GMT)
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