Citibank Agents New PowerSecure Term Debt Facility
PowerSecure International announced it has taken advantage of the very favorable interest rate environment to secure a new $25 million, seven- year term debt facility. In a related 8-K filing, the company said Citibank served as administrative agent and lender along with BB&T as a lender.
These actions provide the company with up to $45 million of low-cost, long-term debt capacity to support its growth and future investments in company-owned distributed generation systems, additional utility services equipment, potential acquisitions and working capital.
The company said it plans to execute interest rate swaps to achieve a fixed interest rate, which it estimates will be in the 3.7 to 3.9% range given current market rates, on a majority of the term facility’s principal amount. In addition, the company has extended its existing $20 million revolving debt facility through 2016. There is currently nothing drawn on this revolver.
Wake Forest, NC-based PowerSecure International is a provider of utility and energy technologies to electric utilities, and their industrial, institutional and commercial customers.