Dan,
If you follow VTNR, do you think the market may be overreacting to their announcement today regarding the amendment of their loan terms? Down 25% for the day currently. Thanks.
Vertex Energy Amends Existing Term Loan Agreement
01/02/2024
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Amended term loan provides for an incremental $50.0 million of liquidity on balance sheet
Additional financing is expected to provide strategic flexibility around potential transaction opportunities
HOUSTON--(BUSINESS WIRE)-- Vertex Energy, Inc. (NASDAQ: VTNR) (“Vertex” or the “Company”), a leading specialty refiner and marketer of high-quality refined products, today announced that it has successfully amended its existing term loan agreement. The Company has reached an agreement with its existing group of lenders to modify certain terms and conditions of the term loan agreement aimed at improving the Company’s balance sheet.
The amended term loan provides for an incremental $50.0 million in borrowings to Vertex, the full amount of which was borrowed upon closing, which brings the total outstanding balance on the term loan to $198.0 million. The amended agreement also bears interest at a rate of a base rate calculated as the greater of (i) prime minus 1.5%, and (ii) the federal funds rate (not less than 1%) plus 0.5%, plus 1025 basis points and includes no change to the previous duration of the term loan agreement due April 1, 2025. These amendments were pursued to support current operational and strategic needs as the Company continues to evaluate previously disclosed alternative options aimed at strengthening the Company’s balance sheet. The lenders also have the option in their sole discretion to provide up to an additional $25.0 million of lending availability under the term loan, subject to certain terms and conditions.
Benjamin P. Cowart, President and CEO of Vertex, stated, “This agreement not only reinforces our liquidity position but also gives us the strategic latitude to continue a comprehensive evaluation of potential transaction opportunities around the business. We believe our lending partners share our vision of the long-term value potential of the Company, and we believe this enhanced flexibility will be in the best interest of our shareholders, as we continue to work to make steady progress toward achieving our goals.”
Additional information on the amended term loan can be found in our Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on January 2, 2024.
Vertex Energy - VTNR
Re: Vertex Energy - VTNR
It is on my Watch List, but I have not looked at it closely for over a year.
TipRanks: "In the last 3 months, 5 ranked analysts set 12-month price targets for VTNR. The average price target among the analysts is $6.38. The 5 price targets range from $4.00 to $9.50."
Additional liquidity should be a plus for the company. Lenders don't raise the borrowing base unless they believe in the company's business plan.
TipRanks: "In the last 3 months, 5 ranked analysts set 12-month price targets for VTNR. The average price target among the analysts is $6.38. The 5 price targets range from $4.00 to $9.50."
Additional liquidity should be a plus for the company. Lenders don't raise the borrowing base unless they believe in the company's business plan.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group