American Resources of Delaware Inc. arranges new revolving credit facility of up to $20 million.SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Sept. 1, 1995--American Resources of Delaware Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GASS GASS Greenland Air Surveillance System GASS Gas Analyzing Sensor System GASS Guidance Accuracy Study for SPRINT GASS Google AdSense Stats Syndrome GASS Generic Application Simulation System (Boeing Rotocraft) ) (ARI ARI Acute respiratory infection, see there ) has accepted a commitment from Den norske Bank Den norske Bank or DnB was a Norwegian bank that existed between 1990 and 2003 when it merged with Gjensidige NOR to form the present DnB NOR. The bank's headquarters were in Bergen, Norway. AS (DnBank) to provide ARI with a six and one half year revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility to a maximum amount of $20 million with interest at prime plus 1 percent. The facility will be secured by a lien on all oil and gas properties, related inventories, and accounts receivable and an assignment of a note receivable. DnBank has established an initial borrowing base of $12.5 million, which limit is subject to semi-annual review. Borrowing under the facility will be used to refinance existing debt and to provide funds for the development of existing properties and/or acquisition of new projects. The facility will replace the existing revolving credit facility with Bank One, Texas, which facility had a limit of $10 million with interest at prime plus 2 percent and a current borrowing base of $9.6 million. Rick Avare, chief financial officer of ARI, commented that "this significant commitment by Den norske Bank AS reflects ARI's growing financial strength and represents an extremely positive development in the continued growth of ARI and fulfillment of its business plan." CONTACT: American Resources of Delaware Inc., Scottsdale Investor Relations, 602/945-9195 |
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