Alto Ingredients Inc (ALTO)

[ID Supermoney]

3. PE Holdings has a revolving credit facility and a term based facility that is part of the "Plant debt". The revolving facility was reduced by $15M, and the term facility increased. This allowed them to borrow $7M for the plant. At not great terms.


Quote:
The additional $7.0 million in borrowings is subject to an original issue discount of 6.25%, representing loan fees payable to the lenders, resulting in net proceeds from the additional borrowings of approximately $6.6 million.


The interest of the facility is Prime + 10%. They borrowed $7M, Paid $400K in immediate fees. Had loan proceeds of $6.6M and they pay interest on the $7M principal.

Again Lenders changed the rules for them to lend again!! See my previous posts!!


ID