ENSV - Enservco completes refinancing agreement for balance sheet strengthening

Strengthening its balance sheet, Enservco ([[ENSV]]) closed its refinancing agreement with East West Bank thereby cutting its bank debt nearly in half and increasing shareholders' equity by ~$17.5M."We are gearing up to meet an expected seasonal increase in demand during our Q4 and 1Q21 when Enservco generates the majority of its revenue and profitability," executive chairman Rich Murphy, whose investment firm, Cross River Partners, is Enservco’s largest shareholder.New financing includes a $17M term loan (interest only) and a $1M working capital revolving line of credit with no initial balance – both of which have October 15, 2021, maturity dates.In exchange of the $16M in debt reduction, Enservco issued to EWB 8M shares of restricted common stock that will not be tradeable for six months and 15M common stock purchase warrants (5-year expiry) exercisable at $0.25/ beginning October 15, 2021.

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Enservco completes refinancing agreement for balance sheet strengthening