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Update: Spark Energy Further Details Consideration Paid At Closing Of Verde Acquisition
In an 8-K, Spark Energy provided further details concerning consideration paid in connection with its acquisition (accomplished through its subsidiary CenStar Energy) of Verde Energy, which recently closed, as RetailEnergyX.com reported yesterday
Specifically, Spark Energy (the company) in the 8-K stated, "On July 1, 2017, the Company and CenStar completed the acquisition from the Seller (the 'Acquisition') of all of the membership interests and stock in each of the Verde Companies pursuant to the Purchase Agreement. Total consideration paid at the closing of the Acquisition was approximately $85.8 million, of which approximately $21.0 million was used to purchase positive net working capital. The Company funded the closing consideration through: (i) approximately $6.8 million of cash on hand, (ii) approximately $15.0 million in subordinated debt from the Company's founder and majority shareholder through an existing subordinated debt facility, (iii) approximately $44.0 million in borrowings under its senior secured revolving credit facility, and (iv) the issuance by CenStar to the Seller of a promissory note in the aggregate principal amount of $20.0 million (the 'Promissory Note'). In addition to the consideration paid at closing, CenStar is obligated to pay 100% of the Adjusted EBITDA earned by the Verde Companies for the 18 months following closing that exceeds certain thresholds, subject to the Verde Companies’ ability to achieve defined customer count criteria."
Spark Energy also included in the 8-K a copy of an amendment to the purchase agreement. See the 8-K here
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July 6, 2017
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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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