GreenHunter Resources secures $16M senior secured term loan

GreenHunter Resources Inc. (NYSE MKT: GRH and GRH.PRC) has entered into an agreement for a senior secured term note financing of up to $16 million.

Use of proceeds from the senior secured financing includes development of two new barge terminals at GreenHunter's Matamoras and Mills Hunter facilities, four new saltwater disposal (SWD) wells at the Mills Hunter facility, new trucks, and for general corporate purposes.

The promissory notes bear a fixed annual interest percentage rate of 9%. The loan is payable over a 36-month term with interest only for the first six months. There are no forms of equity or warrants associated with this new term loan.

The senior secured term loan facility is structured in two tranches. The first tranche of loans will be in the principal amount of $13,000,000, subject to customary conditions, and, at the request of the borrower and subject to the certain conditions. The second tranche of loans will be in a principal amount of up to $3,000,000 and must occur within six months of the first closing.

Northland Capital Markets acted as financial advisor to GreenHunter in connection with the transaction.

GreenHunter Resources Inc. is a diversified water resource, waste management, environmental services, and hydrocarbon marketing company specializing in the unconventional oil and natural gas shale resource plays.



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