Daily News: October 29, 2012

Bayside Capital Provides Financing for Coal Producer


Coal producer Xinergy announced it has secured a $20 million financing commitment from affiliates of Bayside Capital on behalf of various funds under its management, replacing a commitment previously obtained by the company on July 27, 2012.

The financing commitment contemplates a $20 million first lien senior secured term loan facility that the company can draw in two tranches of $10 million each, bearing interest at a rate of 9.875% per annum and having a four-year term.

In consideration for the financing commitment, Xinergy has agreed to issue to the lenders 500,000 common share purchase warrants with a five- year term and a strike price of CDN $1.20 per share. Upon closing of the first $10 million term loan, the company would issue to the lenders an additional 450,000 common share purchase warrants with a five-year term and a strike price equal to $1.40 per share, and upon closing of the second $10 million term loan, the company would issue to the lenders an additional 350,000 common share purchase warrants with a five-year term and a strike price equal to $1.60 per share.

The Bayside financing commitment expires on December 31, 2012, and provides for the issuance of the second $10 million tranche up to one year following issuance of the first $10 million tranche.

Knoxville, TN-based Xinergy, through its wholly owned subsidiary Xinergy Corp. and its subsidiaries, is engaged in coal mining in eastern KY, WV and VA.