Lonestar West Inc. has announced that it has completed a subordinate secured debenture financing in the aggregate amount of CAN$800 000 (the debentures).
The debentures carry an annual interest rate of 14% and have a maturity date of 31 January 2019. The obligations under the debentures are secured by the company's grant of a security interest in its assets (including the assets of its subsidiaries) in favour of the debenture holders. This security interest is subordinate to the company's indebtedness held by HSBC Bank Canada and rank equally to the Series A debentures issued in December 2015.
None of the company's common shares or securities convertible into common shares are being issued in connection with the debentures and no commissions or finder's fees are applicable in connection with the debentures. The funds received from the debenture financing will be used to reduce the company's current working capital line with HSBC Bank Canada.
Read the article online at: https://www.worldpipelines.com/business-news/21122016/lonestar-west-closes-debenture-financing/