Vertex Energy, Inc. announced that it has received $155 million in funding from U.S. Bank National Association
November 31, 2021
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Vertex Energy, Inc. announced that it has entered into Material Definitive Agreement with U.S. Bank National Association for a placement of 6.25% Convertible Senior Notes due 2027 for the gross proceeds of $155 million on November 1, 2021. The Notes will bear interest at a rate of 6.25% per year, payable semiannually in arrears on April 1 and October 1 of each year, beginning on April 1, 2022. The Notes will be convertible at an initial conversion rate of 169.9235 shares of Vertex Energy?s common stock, per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $5.89 per share, which represents a conversion premium of approximately 37.5% to the last reported sale price of $4.28 per share of Vertex Energy?s common stock on The Nasdaq Capital Market on October 26, 2021). The Notes will mature on October 1, 2027, unless earlier repurchased, redeemed or converted. Prior to July 1, 2027, the Notes will be convertible at the option of the holders of the Notes only upon the satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The company will pay $21.1 million placement agent fees and estimated offering costs and expenses payable.
Vertex Energy Inc. is an energy transition company that specializes in producing both renewable and conventional fuels. The Company is engaged in operations across the petroleum value chain, including refining, collection, aggregation, transportation, storage and sales of aggregated feedstock and refined products to end-users. Its segments include Refining and Marketing and Black Oil and Recovery. The Refining and Marketing segment is engaged in the refining and distribution of petroleum products and includes the Mobile Refinery and related operations. In addition, it aggregates a diverse mix of feedstocks petroleum distillates, transmix and other off-specification chemical products. The Black Oil business is engaged in operations across the entire used motor oil recycling value chain including collection, aggregation, transportation, storage, refinement, and sales of aggregated feedstock and re-refined products to end users. It owns a fleet of 68 collection vehicles.