Sprott Power extends debt term, nabs USD 2.6m in funds
Dec 27, 2011 - Canadian Sprott Power Corp (TSE:SPZ) said Friday it had agreed to extend the maturity term and cut the interest rate of asset-related debt and unveiled an additional financing of CAD 2.65 million (USD 2.6m/EUR 2m).
The renewable energy projects developer said it had struck an agreement with Central 1 Credit Union to extend to December 2016 the maturity term of the debt on its assets in the Canadian province of Ontario. Sprott has also agreed a lower interest rate. As a result the company has managed to cut its annual debt service and interest costs by some CAD 300,000, it said.
Furthermore, Sprott announced that it had obtained CAD 2.65 million in additional funds to repay part of its vendor take-back debt and for working capital needs.