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Encina Business Credit Provides $30MM Senior Facilities to Vertex Energy

February 08, 2017, 07:38 AM
Filed Under: Energy

Vertex Energy, Inc., a refiner and marketer of high-quality specialty hydrocarbon products, announced that it has entered into funding agreements with Encina Business Credit, LLC (EBC) providing for up to $30 million of senior secured debt. The financing, which is comprised of a revolving line of credit, a funded term loan and a delayed draw term loan, will be used to refinance certain of the company’s existing indebtedness and to provide working capital for growth.

Vertex’s Chief Executive Officer, Benjamin P. Cowart, said, “The refinance of the company's prior credit facility reflects our belief in the future growth of the company. We believe that this step was necessary in ensuring that we clean up our balance sheet, which includes paying off both of our prior lenders, consolidating our debt into one facility and strengthening our cash position.”

Mr. Cowart added, "With the financing completed, we were able to close on the acquisition of the assets of a small collection company in Louisiana. With approximately 90 million gallons of processing capacity, we believe that our collections vertical is key to our growth. Our self-collected gallons today are approximately 20% of our overall production. We anticipate increasing this to 25% in 2017, while we expand our overall production volumes.”

Mr. Cowart concluded, “We believe that we are well-positioned to grow our business in 2017. Our goal for growth involves expanding collections, increasing production volumes and moving to higher margin products, all of which are underway.”

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