Homeland Energy Completes $29 Million Debt Financing

Homeland Energy Group Limited (TSX:HEG) announced that it has completed a debt financing of US$29 Million provided by GMR Energy.

The press release is quoted as saying:

The proceeds of the loan will be used by Homeland Energy to repay the outstanding loan owed to Nedbank Limited by its South African subsidiary, Ferret Coal (Proprietary) Ltd (“Ferret Coal”), for immediate capital and working capital requirements of Homeland and its subsidiaries. The loan from GMR is for an initial term of one year and extendable by another 2 years, subject to TSX approval. The loan bears interest at the rate of LIBOR plus 4.5% per annum, calculated monthly and payable quarterly during the term of the loan. The principal is repayable at the end of the initial term, provided that if the term is extended, then the entirety of the principal will be repayable at the end of the 3rd year. Homeland Energy retains the flexibility to refinance the loan and prepay GMR Energy at any time without any prepayment penalty.

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