Business
American Power Group Corporation Announces Expansion and Extension of Its Primary Credit Facility With Iowa State Bank to 2026
American Power Group Corporation Announces Expansion and Extension of Its Primary Credit Facility With Iowa State Bank to 2026.
About this update from American Power Group Corp.
[{"type":"text","content":"\n \n \n American Power Group Corporation Announces Expansion and Extension of Its Primary Credit Facility With Iowa State Bank to 2026\n \n \nAmerican Power Group Corporation Announces Expansion and Extension of Its Primary Credit Facility With Iowa State Bank to 2026\n\n$3.0 Million to Be Amortized Over Ten Years; New $500,000 Working Capital Line Added\n\n \n LYNNFIELD, MA--(Marketwired - Sep 19, 2016) - American Power Group Corporation (OTCQB: APGI) today announced that its subsidiary, American Power Group, Inc.'s primary lender, Iowa State Bank, an Algona, Iowa institution, has agreed to convert the Company's outstanding loan balance of $3 million into a ten-year term loan with monthly payments starting in December 2016 and provide a new $500,000 secured working capital line with an initial maturity of September 2017. In addition, Matt Van Steenwyk and Neil Braverman, two members of the Company's Board of Directors, have each agreed, severally and not jointly, to guaranty the payment of up to $1,750,000 of the obligations due under the credit facility. Specific details of this transaction can be found in the Company's Form 8-K, which will be filed with the Securities and Exchange Commission later today.\n Chuck Coppa, American Power Group's Chief Financial Officer, stated, \"The expansion and extension of our primary loan through 2026 once again demonstrates Iowa State Bank's continued support of our business plan and strategic direction. The implementation of the new credit facility provides us access to $900,000 of additional working capital not previously available.\" Mr. Coppa added, \"The fact that Matt and Neil have each agreed to individually guaranty up to $1.75 million of our ISB obligations speaks volumes to their level of commitment to American Power Group and our industry leading efforts.\"\n Lyle Jensen, American Power Group's CEO commented, \"Being able to move a significant amount of our debt from short-term to long-term coupled with a new working capital line of credit are critical pieces of our business model in supporting the planned fiscal 2017 growth previously discussed in our most recent investor conference call. We greatly appreciate Iowa State Bank's continued support and cooperation in helping us become a leader in the dual fuel and flare capture and recovery businesses.\" \n About American Pow...