GREY:LFDEF - Post by User
Post by
Empkj58on Apr 06, 2018 9:57am
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Post# 27841901
UR
URAttached is the news release from Urthecast from earlier this week. I highlighted a section that discusses the $142 million loan. I’ve read this thing a few times and it dawned on me that the institution that lent them the funds believes that Urthecast can repay the loan through cash flow. I found this to be very interesting. UR’s revenues must be large enough in the next 3 years to generate that kind of cash flow in order to pay back the loan. Just an FYI I wanted to share. I’m looking for some shred of light in this story.
The UrtheDaily Senior Secured Facility will accrue interest at 12% per annum, 7% of which may be satisfied by payment in kind ("PIK") and accrued to the loan principal until August 30, 2020. The UrtheDaily Senior Secured Facility will mature on the fifth anniversary of the closing date, upon which the UrtheDaily Senior Secured Facility will be repayable in full. After August 30, 2020, the Company must prepay the UrtheDaily Senior Secured Facility with 100% of the free cash flow attributable to the UrtheDailyTM Constellation, however, this may be reduced subject to certain financial covenants.