Knight Seals the Deal for $2.5MM Debt Financing
On July 3, 2008 Knight Energy Corp. entered into a Note Purchase Agreement with HD Special-Situations, LP pursuant to which Knight sold to the Lender a 15% Senior Secured Promissory Note, face amount $2,500,000, for $2,500,000.
The Note is due and payable on May 20, 2010, and the Lender secured the Company's obligations under the Note with a first-priority security interest in all existing and later acquired assets owned by Knight, and by a first-priority security interest in all existing and later acquired assets owned by Knight's wholly-owned subsidiary, Charles Hill Drilling, Inc. Under the terms of the Agreement, the proceeds from sale of the Note were placed directly into escrow, and the Company is permitted to use the net proceeds from the Note only for the purchase and subsequent refurbishment of two oil drilling rigs and related equipment. The Company must obtain the Lender's consent before drawing funds to purchase and refurbish the two oil drilling rigs.
"We are extremely pleased to close our second financing transaction with HD Special-Situations, LP. This additional funding will assist the Company in the pursuit of its business plan and the development of its oil and gas properties," said Knight CEO William J. Bosso.
- Knight Well Services Says Hello to New Engineering Manager (Jan 20)
- Knight Completes New Discovery Well in Texas (Dec 22)
- Knight's Subsidiary Nabs 2 New Drilling Rigs (Jul 10)