Bright Green (NASDAQ: BGXX), a company listed on the NASDAQ stock exchange, has entered into a credit agreement with JVR Holdings, establishing a line of credit worth up to $60 million. This financial arrangement was formalized on March 14, 2024, and grants Bright Green the ability to make a maximum of 12 drawdowns from the facility before its maturity date on May 1, 2034.
Each drawdown from the line of credit must be a minimum of $5 million. The agreement stipulates a non-refundable processing fee of $1.2 million, which will be deducted from the initial advance. Moreover, Bright Green has agreed to pay JVR Holdings an application fee of $75,000 or provide 350,000 shares of its common stock upon the execution of the credit agreement.
The credit facility's terms allow for an extension of the maturity date at Bright Green's request, subject to JVR Holdings' approval. The borrowed principal under the line of credit will accrue interest at a fixed annual rate of 14.0%.
After the initial disbursement, Bright Green has the option to convert the outstanding amounts into variable rate loans, which would then be subject to an interest rate of the prime rate reported by Bank of America plus a 10% annual premium.
The repayment structure requires only interest payments in the first month following any disbursement. Subsequently, Bright Green is to follow an amortization schedule that includes both principal and interest payments. The entire outstanding principal and any accrued interest must be fully repaid by the maturity date.
In the event of a default, as defined in the credit agreement, JVR Holdings retains the right to demand immediate payment of all outstanding principal and interest. Default conditions are standard for such agreements. JVR Holdings also has the right to appoint a receiver, take possession of, or dispose of collateral, and apply any proceeds from collateral to cover expenses.
The line of credit is secured by a mortgage on Bright Green's principal executive office located at 1033 George Hanosh Blvd, Grants, NM, with a registered amount of $100 million. This financial move, as disclosed in a recent SEC filing, provides Bright Green with a significant credit facility to support its operations and strategic initiatives.
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