By a News Reporter-Staff News Editor at Energy Weekly News -- Ceiba Energy Services Inc. ("Ceiba" or the "Company") (TSX VENTURE:CEB) is pleased to announce that the Company has repaid and cancelled all of its credit and loan facilities. As previously disclosed, the Company intended to use a portion of the $16.1 million private placement that closed on July 24, 2014 to reduce indebtedness. The Company has now fully repaid and cancelled its credit facility with ATB Financial which had approximately $1.4 million outstanding. The Company has also repaid the $5.1 million mezzanine loan with Quest Capital Management Corp., Earlston Investments Corp. and individual investors without paying any fee associated with the previously announced extension of the mezzanine loan.
Currently, Ceiba has no loans or credit facilities outstanding, other than the convertible debentures of Ceiba issued in several tranches from mid-2012 to early 2013 (collectively, the "Convertible Debentures"). There are $7,338,000 face value of 12% Convertible Debentures that are due July 31, 2016 and $1,493,000 face value of 10% Convertible Debentures that are due January 31, 2017. Holders of the Convertible Debentures may elect to convert the Convertible Debentures into common shares of the Company at any time at the conversion price of $1.00 and $0.70 per common share, respectively. The Company may redeem the Convertible Debentures after January 31, 2016 under certain conditions.
The Company is well capitalized after the repayment of its outstanding credit and loan facilities. With approximately $15 million of cash, the Company will move forward with its previously announced capital expansions and will work with potential lenders to develop traditional credit facilities. The Company will release its 2014 second quarter financial and operating results in late August and will provide a more detailed financial update at that time.
Keywords for this news article include: Energy, Utilities.
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