Iowa State Bank agreed to convert American Power Group’s outstanding loan balance of $3 million into a 10-year term loan with monthly payments starting in December 2016, and to provide a new $500,000 secured working capital line with an initial maturity of September 2017.
In addition, Matt Van Steenwyk and Neil Braverman, two members of the company’s board of directors, have each agreed to guarantee the payment of up to $1.75 million of the obligations due under the credit facility.
Chuck Coppa, American Power Group‘s chief financial officer, said, “The expansion and extension of our primary loan through 2026 once again demonstrates Iowa State Bank’s continued support of our business plan and strategic direction. The implementation of the new credit facility provides us access to $900,000 of additional working capital not previously available. The fact that Matt and Neil have each agreed to individually guaranty up to $1.75 million of our ISB obligations speaks volumes to their level of commitment to American Power Group and our industry leading efforts.”
American Power Group provides products and services that promote the economic and environmental benefits of alternative fuel and emission reduction technologies.