Toronto Stock Exchange: XRG
KNOXVILLE, TN, July 27, 2012 /CNW/ - Xinergy Ltd., (TSX: XRG) ("Xinergy"
or the "Company"), a Central Appalachian coal producer, announced today
that it has secured a $20 million financing commitment from Marret
Asset Management Inc. ("Marret") on behalf of various funds under its
management (the "Lenders"). The financing commitment contemplates an
issuance of US $20 million in principal amount of first lien senior
secured notes, which notes would bear interest at a rate of 9.875% per
annum, have a three year term and be issued at an original issue
discount of 98% of face value.
In consideration for the financing commitment, Xinergy has agreed to pay
the Lenders $200,000 and issue to the Lenders one million common share
purchase warrants with a five year term and a strike price of CDN $1.20
per share. If the financing closes, the Company will issue to the
Lenders an additional 500,000 common share purchase warrants with a
five year term and a strike price equal to 120% of the volume weighted
average trading price of Xinergy's common shares for the five day
period immediately prior to the Company's delivery of notice to Marret
of its intention to issue the notes.
Closing of the financing is subject to customary closing conditions, and
issuance of the warrants is subject to Toronto Stock Exchange approval.
About Xinergy Ltd.
Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly
owned subsidiary Xinergy Corp. and its subsidiaries, is engaged in coal
mining in eastern Kentucky, West Virginia and Virginia. Xinergy sells
high quality thermal and metallurgical coal to electric utilities,
steelmakers and industrial companies. For more information, please
This release contains "forward-looking information" relating to offering
of the Notes. Forward-looking information should not be read as a
guarantee of future performance and will not necessarily be accurate
indications of the times at, or by which, that performance will be
achieved. There are several risks that could cause actual performance
to differ materially from those expressed in or suggested by the
forward-looking information which are more fully described in Xinergy
Ltd.'s filings with the Canadian Securities Administrators, including
its Annual Information Form for the year ended December 31, 2011,
available on SEDAR at www.sedar.com. You should not put undue reliance
on any forward-looking information. We assume no obligation to update
forward-looking information, except to the extent required by
applicable securities laws.
SOURCE: Xinergy Ltd.
For further information:
Director, Investor Relations
Michael R. Castle
Chief Financial Officer