Commerce Bank Provides World Energy Facility
World Energy Solutions announced it entered into a $6 million, 60-month term loan and $2.5 million line of credit with Commerce Bank. This facility replaces the company’s prior $9 million facility with Silicon Valley Bank (SVB).
The new term loan bears interest at 6% (prime + 2.75%) and is interest only for the first six months. The line of credit bears interest at 5% (prime + 1.75%) and is a three-year committed facility. The rates for both the new term loan and line of credit can be further reduced by up to 0.5% if certain EBITDA performance criteria are met on a six-month rolling average.
“We are pleased to be entering into a strategic banking relationship with Commerce Bank, a well-regarded local institution,” said Jim Parslow, CFO of World Energy Solutions. “Our line of credit was up for renewal in early 2014, and we took the opportunity to talk with several banks that expressed interest in our business. Commerce Bank came through with a very competitive offer, giving us substantially better terms, expanding our financial flexibility and reducing our interest rate on the term note by 1.75%.”
Added Phil Adams, CEO, “World Energy is proud to be a Worcester company. We were founded here and have deepened our commitment to the city and region over the last decade by reliably serving its businesses and institutions, hiring locally, dedicating our charitable efforts to area causes, and signing a 10-year lease for our 100 Front Street headquarters. Teaming with Commerce Bank, a local institution that has been a fixture of the Worcester landscape since 1955, is a great move for us, and we are looking forward to working with them as we continue to execute our growth strategy.”
World Energy Solutions is an energy management services firm.